Pitino acquired $90$ percent of Brey's outstanding shares on January $1,2022,$ in exchange for $$549,000$ in cash. The subsidiary's stockholders' equity accounts totaled $$533,000,$ and the noncontrolling interest had a fair value of $$61,000$ on that day. However, a building $($with a ten$-$year remaining life$)$ in Brey's accounting records was undervalued by $$34,000.$ 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 $$87,000$ in $2022$ and $$103,000$ in $2023.$ Brey declared dividends of $$30,500$ in $2022$ and $$34,500$ 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$)$

$2022$ $ $92,000$ $ $230,000$ $ $48,000$

$2023112,500250,00060,000$

$2024192,500275,00055,000$

At December $31,2024,$ Pitino owes Brey $$39,000$ 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 $ $(908,000)$ $ $(481,000)$

Cost of goods sold $538,000232,000$

Expenses $187,700104,000$

Equity in earnings of Brey $(134,550)0$

Net income $ $(316,850)$ $ $(145,000)$

Retained earnings, $1/1/24$ $ $(534,000)$ $ $(324,000)$

Net income $($above$)(316,850)(145,000)$

Dividends declared $152,00059,000$

Retained earnings, $12/31/24$ $ $(698,850)$ $ $(410,000)$

Cash and receivables $ $169,000$ $ $121,000$

Inventory $370,000300,000$

Investment in Brey $691,6500$

Land, buildings, and equipment $($net$)987,000351,000$

Total assets $ $2,217,650$ $ $772,000$

Liabilities $ $(888,800)$ $ $(28,000)$

Common stock $(630,000)(334,000)$

Retained earnings, $12/31/24(698,850)(410,000)$

Total liabilities and equities $ $(2,217,650)$ $ $(772,000)$

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 $$134,550$ 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 $$691,650$ 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.