Net Income Dividends Declared 2017 2018 $ 80,000 115,000 $8,000 8,000
On January 1, 2017, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Inc., for $810,000 in cash and stock options. At the acquisition date, NetSpeed had common stock of $800,000 and
During the next two years, NetSpeed reported the following:
On July 1, 2017, QuickPort sold communication equipment to NetSpeed for $42,000. The equipment originally cost $48,000 and had
a. Compute the equity method balance in QuickPort’s Investment in NetSpeed, Inc., account as of December 31, 2018.
b. Prepare the worksheet adjustments for the December 31, 2018, consolidation of QuickPort and NetSpeed.
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