Answer:
a. 
Dr Investment in Wolfpack, Inc.	618,500
 Cr Contingent performance obligation 51,800
 Cr Cash 566,700
b. 
12/31/17	
Dr Loss from increase in contingent performance obligation 7,400	
 Cr Contingent performance obligation 7,400 
12/31/17	
Dr Loss from increase in contingent performance obligation 200
 Cr Contingent performance obligation 200 
12/31/18
Dr Contingent performance obligation	59,000	
 Cr Cash 59,000
c. 
 Equity Method 
Dr Common stock- Wolfpack	200,000	
Dr Retained earnings-Wolfpack 274,000
 Cr Investment in Wolfpack	474,000
Dr Royalty agreements 122,400
 Dr Goodwill 71,500
 Cr Investment in Wolfpack 193,900
 
Dr Equity earnings of Wolfpack 74,400
 Cr  Investment in Wolfpack	74,400	
Dr Investment in Wolfpack	25,000	
 Cr Dividends paid 25,000
Dr Amortization expense 13,600	
 Cr Royalty agreements 13,600
d. 
 Initial Value Method 
Dr Investment in Wolfpack 59,400 
 Cr Retained earnings-Branson	59,400	
Dr Common stock- Wolfpack	200,000	
Dr Retained earnings-Wolfpack 284,000
 Cr Investment in Wolfpack	484,000	
Dr Royalty agreements 122,400
Dr Goodwill 71,500	
 Cr Investment in Wolfpack	193,900	
Dr Dividend income	25,000	
 Cr Dividends paid 25,000
Dr Amortization expense	13,600	
 Cr Royalty agreements 13,600
 Explanation:
a. Preparation of the Journal entry to record the acquisition of the shares of its Wolfpack subsidiary
Dr Investment in Wolfpack, Inc.	618,500
 Cr Contingent performance obligation 51,800
 Cr Cash 566,700
(566,700+51,800)
b. Preparation of the Journal entries at the end of 2017 and 2018 and the December 31, 2018, payment. 
12/31/17	
Dr Loss from increase in contingent performance obligation 7,400
(59,200 - 51,800) 
 Cr Contingent performance obligation 7,400 
12/31/17	
Dr Loss from increase in contingent performance obligation 200
 (59,000 - 59,200) 
 Cr Contingent performance obligation 200 
12/31/18	
Dr Contingent performance obligation	59,000	
 Cr Cash 59,000
c. Preparation of consolidation worksheet journal entries as of December 31, 2018
 
 Equity Method 
Dr Common stock- Wolfpack	200,000	
Dr Retained earnings-Wolfpack 274,000
 (211,000+ (78,000 - 15,000)	
 Cr Investment in Wolfpack	474,000	(274,000+200,000)
Dr Royalty agreements 122,400
 (136,000 - 13,600)	
(136,000/10 years=13,600)
Dr Goodwill 71,500
 ( 618,500- 411,000 - 136,000)	
 Cr Investment in Wolfpack 193,900
(122,400+71,500) 
Dr Equity earnings of Wolfpack 74,400
 (88,000 - 13,600)	
 Cr Investment in Wolfpack	74,400	
Dr Investment in Wolfpack	25,000	
 Cr Dividends paid 25,000
Dr Amortization expense 13,600
(136,000/10 years) 
 Cr Royalty agreements 13,600
d. Preparation of consolidation worksheet journal entries as of December 31, 2018, 
 Initial Value Method 
Dr Investment in Wolfpack 59,400
 (88,000-15,000-13,600) 
 Cr Retained earnings-Branson	59,400	
Dr Common stock- Wolfpack	200,000	
Dr Retained earnings-Wolfpack 284,000
(211,000+ (88,000 - 15,000)	
 Cr Investment in Wolfpack	484,000	
(284,000+200,000)
Dr Royalty agreements 122,400
 (136,000 - 13,600)	
Dr Goodwill 71,500
( 618,500 - 411,000 - 136,000)	
 Cr Investment in Wolfpack	193,900	
Dr Dividend income	25,000	
 Cr Dividends paid 25,000
Dr Amortization expense	13,600	
 Cr Royalty agreements 13,600