On January 1, 2017, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed,...

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On January 1, 2017, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Inc., for $1,152,000 i

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Consideration Paid (Fair Value)			1,152,000


Net Income for 2017		13,300
Less: Data Base Amortization (Excess of fair value to book value)	9,500/5	-1,900

Adjusted net Income		11,400
Ownership 90%		90%

Quick port share of income		10,260
Less: Gain on Equipment transferred	15,500-(18,200-4,200)	1,500
Add: Depreciation (6 month	1,500/3year=500/2	250

Equity earning of Net speed			9,010
Less: Dividend Share 90%	1,900*90%		1,710
Balance on 31/12/17			1,159,300

Net Income for 2018		19,000
Less: Data Base Amortization (Excess of fair value to book value)	9,500/5	-1900

Adjusted net Income		17,100
Ownership %		90%

Quick port share of income		15,390

Add: Depreciation	1,500/3	500

Equity earning of Net speed			15,890
Less: Dividend Share 90%	1900*90%		1,710
Balance on 31/12/18			1,173,480

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