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:

$\backslash$table$[[$Year$,$Cost to Brey,$\backslash$table$[[$Transfer Price to$]],],[2022,$$$86,000,$Pitino,$\backslash$table$[[$Inventory Remaining$],[$at Year$-$End $($at$],[$transfer price$)]]],[2023,110,000,$$$200,000,$$$42,000$

Required:

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 $1,2024?$

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

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

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

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

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

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

Complete this question by entering your answers in the tabs below.

Req $A$ to $D$

Req $E$

Req $F$

Req G

Req $H$

Req 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 $1,2024?$

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

$\backslash$table$[[$a$.$ Annual amortization,$],[$b$.$ Intra$-$entity transfers,Upstream$],[$c$.$ Intra$-$entity gross profit, January $1,2024,],[$d$.$ Intra$-$entity gross profit, December $31,2024,]]$

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Req $A$ to $D$

Req $E$

Req $F$

Req G

Req $H$

Req I

What amounts make up the $$119,970$

Equity in Earnings of Brey account balance for $2024?$

$\backslash$table$[[,,],[,,],[,,],[,,],[,,],[,,\%$

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Req $A$ to $D$

Req $E$

Req $F$

R$$q G

Req $H$

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

Net income attributable to noncontrolling interest