**** I NEED HELP WITH H AND I PARTS****

Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2016, in exchange for $495,000 in cash. The subsidiary's stockholders' equity accounts totaled $479,000 and the noncontrolling interest had a fair value of $55,000 on that day. However, a building (with a ten-year remaining life) in Brey's accounting records was undervalued by $47,000. Pitino assigned the rest of the excess fair value over book value to Brey's patented technology (six-year remaining life).

Brey reported net income from its own operations of $81,000 in 2016 and $97,000 in 2017. Brey declared dividends of $27,500 in 2016 and $31,500 in 2017.

Year	Cost to Brey			Transfer Price to Pitino			Inventory Remaining at Year-End (at transfer price)
2016	$	86,000		$	200,000		$	42,000
2017		110,000			220,000			54,000
2018		147,000			245,000			45,000

At December 31, 2018, Pitino owes Brey $33,000 for inventory acquired during the period.

The following separate account balances are for these two companies for December 31, 2018, and the year then ended.

Note: Parentheses indicate a credit balance.

	Pitino				Brey
Sales revenues	$	(896,000	)		$	(451,000	)
Cost of goods sold		532,000				226,000
Expenses		187,100				92,000
Equity in earnings of Brey		(119,970	)			0
Net income	$	(296,870	)		$	(133,000	)
Retained earnings, 1/1/18	$	(522,000	)		$	(312,000	)
Net income (above)		(296,870	)			(133,000	)
Dividends declared		146,000				53,000
Retained earnings, 12/31/18	$	(672,870	)		$	(392,000	)
Cash and receivables	$	163,000			$	115,000
Inventory		340,000				221,000
Investment in Brey		634,410				0
Land, buildings, and equipment (net)		981,000				345,000
Total assets	$	2,118,410			$	681,000
Liabilities	$	(845,540	)		$	(3,000	)
Common stock		(600,000	)			(286,000	)
Retained earnings, 12/31/18		(672,870	)			(392,000	)
Total liabilities and equity	$	(2,118,410	)		$	(681,000	)

1. What was the annual amortization resulting from the acquisition-date fair-value allocations?

2. Were the intra-entity transfers upstream or downstream?

3. What intra-entity gross profit in inventory existed as of January 1, 2018?

4. What intra-entity gross profit in inventory existed as of December 31, 2018?

5. What amounts make up the $119,970 Equity Earnings of Brey account balance for 2018?

6. What is the net income attributable to the noncontrolling interest for 2018?

7. What amounts make up the $634,410 Investment in Brey account balance as of December 31, 2018?

8. Prepare the 2018 worksheet entry to eliminate the subsidiarys beginning owners equity balances.

9. Without preparing a worksheet or consolidation entries, determine the consolidation balances for these two companies

10. **** PLEASE HELP ME WITH H AND I PARTS !!!

Req A to D Required E Required F. Required G Required H Required I 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, 2018? d. What intra-entity gross profit in inventory existed as of December 31, 2018? Show les Annual amortization Intra-entity transfers Intra-entity gross profit, January 1, 2018 Intra-entity gross profit, December 31, 2018 $ 8,700 Upstream $ 27,000 $ 18,000 Complete this question by entering your answers in the tabs below. Req A to D Required E Required F Required G Required H Required I What amounts make up the $119,970 Equity Earnings of Brey account balance for 2018? Brey's reported net income Excess fair value amortization Realized gross profit Deferred gross profit Adjusted subsidiary net income Ownership Equity in earnings of Brey $ 133,000 (8,700) 27,000 (18,000) $ 133,300 90 $ 119,970 % Complete this question by entering your answers in the tabs below. Req A to D Required E Required F Required G Required H Required I hat is the net income attributable to the noncontrolling interest for 2018? t income attributable to noncontrolling erest $ 13,330 What amounts make up the $634,410 Investment in Brey account balance as of December 31, 2018? $ 495,000 Investment in Brey (consideration transferred) Net income of Brey Reported 2016 2017 2018 Total Intra-entity gross profit, 12/31/18 Adjusted net income 2016-2018 Pitino's ownership Excess amortizations Dividends declared by Brey 2016 2017 2018 Total Pitino's ownership Investment in Brey, 12/31/18 $ 81,000 97,000 133,000 311,000 (18,000) 293,000 90 % 263,700 (23,490) $ 27,500 31,500 53,000 112,000 90 % (100,800) $634,410