Pitino acquired $90$ percent of Brey's outstanding shares on January $1,2019,$ in exchange for $$423,000$ in cash. The subsidis Req A to D

Req $E$

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 $31,2021?$

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$\backslash$table$[[,,],[$a$.,$Annual amortization,$],[$b$.,$Intra$-$entity transfers,$],[$c$.,$Intra$-$entity gross profit, January $1,2021,]]$

d$.$ Intra$-$entity gross profit, December $31,2021$ Req A to D

Req $E$

Req $F$

What amounts make up the $$101,835$ Equity Earnings of Brey account balance for $2021?$

$\backslash$table$[[,,],[,,],[,,],[,,],[,,],[,,],[,,],[,,],[,,]]$ Req A to D

Req $E$

Req F

Req G

Req $H$

Req I

What amounts make up the $$558,630$ Investment in Brey account balance as of December $31,2021?$

$1$Prepare the $2021$ worksheet entry to eliminate the subsidiary's beginning owners' equity balances. $($If no entry is required for a

transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

Consolidation

Worksheet Entries

$1$

Note: Enter debits before credits.

stockholders' equity accounts totaled $$407,000,$ and the noncontrolling interest had a fair value of $$47,000$ on that day. Ha

building $($with a ten$-$year remaining life$)$ in Brey's accounting records was undervalued by $$31,000.$ Pitino assigned the rest

excess fair value over book value to Brey's patented technology $($four$-$year remaining life$).$

Brey reported net income from its own operations of $$73,000$ in $2019$ and $$89,000$ in $2020.$ Brey declared dividends of $$2$

$2019$ and $$27,500$ in $2020.$

Brey sells inventory to Pitino as follows:

At December $31,2021,$ Pitino owes Brey $$25,000$ 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.

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 $$101,835$ Equity Earnings of Brey account balance for $2021?$

f$.$ What is the net income attributable to the noncontrolling interest for $2021?$

g$.$ What amounts make up the $$558,630$ 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.

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

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 $31,2021?$