Pitino acquired $90$ percent of Brey's outstanding shares on January $1,2022,$ in exchange for $$414,000$ in cash. The subsidiary's stockholders' equity accounts totaled $$398,000,$ and the noncontrolling interest had a fair value of $$46,000$ on that day. However, a building $($with a ten$-$year remaining life$)$ in Brey's accounting records was undervalued by $$29,000.$ Pitino assigned the rest of the excess fair value over book value to Brey's patented technology $($four$-$year remaining life$).$

Brey reported net income from its own operations of $$72,000$ in $2022$ and $$88,000$ in $2023.$ Brey declared dividends of $$23,000$ in $2022$ and $$27,000$ 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$)$

$2022$ $ $77,000$ $ $155,000$ $ $33,000$

$202396,250175,00045,000$

$2024140,000200,00075,000$

At December $31,2024,$ Pitino owes Brey $$24,000$ 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 $ $(878,000)$ $ $(406,000)$

Cost of goods sold $523,000217,000$

Expenses $186,20074,000$

Equity in earnings of Brey $(91,440)0$

Net income $ $(260,240)$ $ $(115,000)$

Retained earnings, $1/1/24$ $ $(504,000)$ $ $(294,000)$

Net income $($above$)(260,240)(115,000)$

Dividends declared $137,00027,000$

Retained earnings, $12/31/24$ $ $(627,240)$ $ $(382,000)$

Cash and receivables $ $154,000$ $ $106,000$

Inventory $295,000176,000$

Investment in Brey $541,8450$

Land, buildings, and equipment $($net$)972,000336,000$

Total assets $ $1,962,845$ $ $618,000$

Liabilities $ $(780,605)$ $ $(22,000)$

Common stock $(555,000)(214,000)$

Retained earnings, $12/31/24(627,240)(382,000)$

Total liabilities and equities $ $(1,962,845)$ $ $(618,000)$

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 $$91,440$ 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 $$541,845$ 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.