Pitino acquired $90$ percent of Brey's outstanding shares on January $1,2022,$ in exchange for $$423,000$ in cash. The subsidiary's stockholders' equity accounts totaled $$407,000,$ and the noncontrolling interest had a fair value of $$47,000$ on that day. However, a building $($with a ten$-$year remaining life$)$ in Brey's accounting records was undervalued by $$31,000.$ 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 $$73,000$ in $2022$ and $$89,000$ in $2023.$ Brey declared dividends of $$23,500$ in $2022$ and $$27,500$ 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$)$

$2022$ $ $78,000$ $ $160,000$ $ $34,000$

$202390,000180,00046,500$

$2024123,000205,00040,000$

At December $31,2024,$ Pitino owes Brey $$25,000$ 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 $ $(880,000)$ $ $(411,000)$

Cost of goods sold $524,000218,000$

Expenses $186,30076,000$

Equity in earnings of Brey $(101,835)0$

Net income $ $(271,535)$ $ $(117,000)$

Retained earnings, $1/1/24$ $ $(506,000)$ $ $(296,000)$

Net income $($above$)(271,535)(117,000)$

Dividends declared $138,00028,000$

Retained earnings, $12/31/24$ $ $(639,535)$ $ $(385,000)$

Cash and receivables $ $155,000$ $ $107,000$

Inventory $300,000181,000$

Investment in Brey $558,6300$

Land, buildings, and equipment $($net$)973,000337,000$

Total assets $ $1,986,630$ $ $625,000$

Liabilities $ $(787,095)$ $ $(18,000)$

Common stock $(560,000)(222,000)$

Retained earnings, $12/31/24(639,535)(385,000)$

Total liabilities and equities $ $(1,986,630)$ $ $(625,000)$

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 $$101,835$ 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 $$558,630$ 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.