Pitino acquired $90$ percent of Brey's outstanding shares on January $1,2022,$ 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 $$81,000$ in $2022$ and $$97,000$ in $2023.$ Brey declared dividends of $$27,500$ in $2022$ and $$31,500$ in $2023.$

Brey sells inventory to Pitino as follows:

Year Cost to Brey Transfer Price to Pitino Inventory Remaining at Year$-$End $($at transfer price$)$

$2022$ $ $86,000$ $ $200,000$ $ $42,000$

$2023110,000220,00054,000$

$2024147,000245,00045,000$

At December $31,2024,$ Pitino owes Brey $$33,000$ for inventory acquired during the period.

The separate account balances for the two companies at December $31,2024,$ and the year then ended follow.

Note: Parentheses indicate a credit balance.

Items Pitino Brey

Sales revenues $ $(896,000)$ $ $(451,000)$

Cost of goods sold $532,000226,000$

Expenses $187,10092,000$

Equity in earnings of Brey $(119,970)0$

Net income $ $(296,870)$ $ $(133,000)$

Retained earnings, $1/1/24$ $ $(522,000)$ $ $(312,000)$

Net income $($above$)(296,870)(133,000)$

Dividends declared $146,00053,000$

Retained earnings, $12/31/24$ $ $(672,870)$ $ $(392,000)$

Cash and receivables $ $163,000$ $ $115,000$

Inventory $340,000221,000$

Investment in Brey $634,4100$

Land, buildings, and equipment $($net$)981,000345,000$

Total assets $ $2,118,410$ $ $681,000$

Liabilities $ $(845,540)$ $ $(3,000)$

Common stock $(600,000)(286,000)$

Retained earnings, $12/31/24(672,870)(392,000)$

Total liabilities and equities $ $(2,118,410)$ $ $(681,000)$

Required:

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

Were the intra$-$entity transfers upstream or downstream?

What intra$-$entity gross profit in inventory existed as of January $1,2024?$

What intra$-$entity gross profit in inventory existed as of December $31,2024?$

What amounts make up the $$119,970$ Equity in Earnings of Brey account balance for $2024?$

What is the net income attributable to the noncontrolling interest for $2024?$

What amounts make up the $$634,410$ Investment in Brey account balance as of December $31,2024?$

Prepare the $2024$ worksheet entry to eliminate the subsidiary$$s beginning owners$$ equity balances.

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