Can you please help with i. Patino acquired 90 percent of Brey's outstanding shares on January 1 2019, in exchange for $513.000 in cash. The subsidiary's stockholders' equity accounts totaled $497,000, and the noncontrolling interest had a fair value of $57,000 on that day. However, a building (with a ten-year remaining life in Brey's accounting records was undervalued by S51,000. Pitino assigned the rest of the excess fair value over book value to Brey's patented technology (five-year remaining life). Brey reported net income from its own operations of $83.000 in 2019 and $99.000 in 2020. Brey declared dividends of $28.500 in 2019 and $32,500 in 2020, Brey sells inventory to Pitino as follows: Year 2017 2020 2021 Cost to Brey $ 38,000 161.000 127,500 Transfer Price to Pitino $ 210,000 230,000 255.000 Inventory Renting at Year-End (ot transfer price) $ 44,000 56,500 55,000 At December 31, 2021, Pitino owes Brey 535,000 for Inventory acquired during the period The following separate account balances are for these two companies for December 31, 2021 and the year then ended Note: Parentheses indicate a credit balance. Pitino Brey Sales revenues (900,000) $(461,000) Cort of goods sold 334,000 220,000 Expenses 107,300 95,000 Equity in earnings of Tey (105,255) Het income 5 (283,935) 5 (137.000) Retained earnings, 1/1/21 5 (520,000) 5(316,000) Net Income (above) (253,955) (137,000) Dividends declared 140,000 Retained earnings, 12/31/21 $ (661,955) 5(398,000) Cash and receivables 5 165,000 $ 117,000 Inventory 350,000 255,000 Investment in Brey 645,300 Land, buildings, and equipment (net) 347.000 Total assets 5 2,143,300 $ 719,000 Liabilities 5 (871, 345) 5 (19,000) Common stock (610,000) (502,000) Retained earnings, 12/31/21 (398,000) Total liabilities and equity $(2,143,300) 5(719,000) a. What was the annual amortization resulting from the acquisition-date fair value allocations? b. Were the intra-entity transfers upstream or downstream? c. What intra-entity gross profit in inventory existed as of January 1, 2021? d. What intra-entity gross profit in inventory existed as of December 31, 2021? e. What amounts make up the $105,255 Equity Earnings of Brey account balance for 2021? 4. What is the net income attributable to the noncontrolling interest for 2021? 9. What amounts make up the $645,300 Investment in Brey account balance as of December 31, 2021? h. Prepare the 2021 worksheet entry to eliminate the subsidiary's beginning owners' equity balances 1. Without preparing a worksheet or consolidation entries, determine the consolidation balances for these two companies. Reg A to D ReqE RegF Reg G ReqH Reg1 Without preparing a worksheet or consolidation entries, determine the consolidation balances for these two companies. (Input all amounts as positive values.) Sales revenues Cost of goods sold Expenses Equity in earnings of Brey Consolidated net income Noncontrolling interest in consolidated net income Consolidated net income to Pitino Retained earnings, 1/1/21 Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in Brey Land, buildings, and equipment (net) Patented technology Total Assets Liabilities Noncontrolling interest in Brey, 12/31/21 Common Stock Retained earnings, 12/31/21 Total liabilities and equity Consolidated Balance $ 1,106,000 $ 517,550 $ 292,800 $ 0 $ 295,650 $ 11,695 $ 526,000 $ 148.000 $ 661,995 $ 247.000 S 350.000 3 $ $ 983,000 $ X OOOOOOOOOOO x
