Pitino acquired $90$ percent of Brey's outstanding shares on January $1,2022,$ in exchange for $$522,000$ in cash. The subsidiary's stockholders' equity accounts totaled $$506,000,$ and the noncontrolling interest had a fair value of $$58,000$ on that day. However, a building $($with a ten$-$year remaining life$)$ in Brey's accounting records was undervalued by $$28,000.$ 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 $$84,000$ in $2022$ and $$100,000$ in $2023.$ Brey declared dividends of $$29,000$ in $2022$ and $$33,000$ 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$)$

$2022$ $ $89,000$ $ $215,000$ $ $45,000$

$2023141,000235,00057,000$

$2024156,000260,00060,000$

At December $31,2024,$ Pitino owes Brey $$36,000$ 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 $ $(902,000)$ $ $(466,000)$

Cost of goods sold $535,000229,000$

Expenses $187,40098,000$

Equity in earnings of Brey $(111,150)0$

Net income $ $(290,750)$ $ $(139,000)$

Retained earnings, $1/1/24$ $ $(528,000)$ $ $(318,000)$

Net income $($above$)(290,750)(139,000)$

Dividends declared $149,00056,000$

Retained earnings, $12/31/24$ $ $(669,750)$ $ $(401,000)$

Cash and receivables $ $166,000$ $ $118,000$

Inventory $355,000260,000$

Investment in Brey $646,2900$

Land, buildings, and equipment $($net$)984,000348,000$

Total assets $ $2,151,290$ $ $726,000$

Liabilities $ $(866,540)$ $ $(15,000)$

Common stock $(615,000)(310,000)$

Retained earnings, $12/31/24(669,750)(401,000)$

Total liabilities and equities $ $(2,151,290)$ $ $(726,000)$

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 $$111,150$ 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 $$646,290$ 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.