Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2019, in exchange for $396,000 in cash. The subsidiary's stockholders' equity accounts totaled $380,000, and the noncontrolling interest had a fair value of $44,000 on that day. However, a building (with a ten-year remaining life) in Brey's accounting records was undervalued by $25,000. 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 $70,000 in 2019 and $86,000 in 2020. Brey declared dividends of $22,000 in 2019 and $26,000 in 2020.

Brey sells inventory to Pitino as follows:

Year	Cost to Brey			Transfer Price to Pitino			Inventory Remaining at Year-End (at transfer price)
2019	$	75,000		$	145,000		$	31,000
2020		82,500			165,000			43,500
2021		95,000			190,000			65,000

At December 31, 2021, Pitino owes Brey $22,000 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.

	Pitino				Brey
Sales revenues	$	(874,000	)		$	(396,000	)
Cost of goods sold		521,000				215,000
Expenses		186,000				70,000
Equity in earnings of Brey		(80,100	)			0
Net income	$	(247,100	)		$	(111,000	)
Retained earnings, 1/1/21	$	(500,000	)		$	(290,000	)
Net income (above)		(247,100	)			(111,000	)
Dividends declared		135,000				25,000
Retained earnings, 12/31/21	$	(612,100	)		$	(376,000	)
Cash and receivables	$	152,000			$	104,000
Inventory		285,000				166,000
Investment in Brey		510,975				0
Land, buildings, and equipment (net)		970,000				334,000
Total assets	$	1,917,975			$	604,000
Liabilities	$	(760,875	)		$	(30,000	)
Common stock		(545,000	)			(198,000	)
Retained earnings, 12/31/21		(612,100	)			(376,000	)
Total liabilities and equity	$	(1,917,975	)		$	(604,000	)

I. Without preparing a worksheet or consolidation entries, determine the consolidation balances for these two companies.

Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2019, in exchange for $396,000 in cash. The subsidiary's stockholders' equity accounts totaled $380,000, and the noncontrolling interest had a fair value of $44,000 on that day. However, a building (with a ten-year remaining life) in Brey's accounting records was undervalued by $25,000. 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 $70,000 in 2019 and $86,000 in 2020. Brey declared dividends of $22,000 in 2019 and $26,000 in 2020. Brey sells inventory to Pitino as follows: Year 2019 2020 2021 Cost to Brey $ 75,000 82,500 95,000 Transfer Price to Pitino $ 145,000 165,000 190,000 Inventory Remaining at Year-End (at transfer price) $ 31,000 43,500 65,000 At December 31, 2021, Pitino owes Brey $22,000 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. Sales revenues Cost of goods sold Expenses Equity in earnings of Brey Net income Retained earnings, 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in Brey Land, buildings, and equipment (net) Total assets Liabilities Common stock Retained earnings, 12/31/21 Total liabilities and equity Pitino Brey $ (874,000) $ (396,000) 521,000 215,000 186,000 70,000 (80,100) $ (247,100) $(111,000) $ (500,000) $ (290,000) (247,100) (111,000) 135,000 25,000 $ (612,100) $ (376,000) $ 152,000 $ 104,000 285,000 166,000 510,975 970,000 334,000 $ 1,917,975 $ 604,000 $ (760,875) $ (30,000) (545,000) (198,000) (612,100) (376,000) $(1,917,975) $ (604,000) Complete this question by entering your answers in the tabs below. Reg A to D ReqE Reg F Req G ReqH ReqI Without preparing a worksheet or consolidation entries, determine the consolidation balances for these two companies. (Input all amounts as positive values.) Consolidated Balance $ 1,080,000 $ 556,750 $ 267,250 $ 247,100 $ 500,000 Sales revenues Cost of goods sold Expenses Equity in earnings of Brey Consolidated net income Noncontrolling interest in consolidated net income Consolidated net income to Pitino Retained earnings, 1/1/21 Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in Brey Land, buildings, and equipment (net) Patented technology Total Assets Liabilities Noncontrolling interest in Brey, 12/31/21 Common Stock Retained earnings, 12/31/21 Total liabilities and equity $ 234,000 418,500 $ $ 1,337,750