Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2016, in exchange for $342,000 in cash. The subsidiary's stockholders' equity accounts totaled $326,000 and the noncontrolling interest had a fair value of $38,000 on that day. However, a building (with a nine-year remaining life) in Brey's accounting records was undervalued by $18,000. Pitino assigned the rest of the excess fair value over book value to Brey's patented technology (six-year remaining life). Brey reported net income from its own operations of $64,000 in 2016 and $80,000 in 2017. Brey declared dividends of $19,000 in 2016 and $23,000 in 2017. Brey sells inventory to Pitino as follows: Inventory Remaining at Year-End (at transfer price) Transfer Cost to Price to Year Brey Pitino 2016 $69,000 $115,000 $25,000 2017 81,000 135,000 37,500 2018 92,800 160,000 50,000 At December 31, 2018, Pitino owes Brey $16,000 for inventory acquired during the period. The following separate account balances are for these two companies for December 31, 2018, 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, 1/1/18 Net income (above) Dividends declared Pitino Brey (862,000) $(366,000) 515,000 209,000 185,400 67,000 (68,400) 0 (230,000) $ (90,000) $ (488,000) $(278,000) (230,000) 136,000 (90,000) 27,000 Retained earnings, $ (582,000) $(341,000) 12/31/18 Cash and receivables $ Inventory Investment in Brey Land, buildings, and equipment (net) Total assets Liabilities Common stock 146,000 $ 98,000 255,000 136,000 450,000 0 964,000 328,000 $ 1,815,000 $ 562,000 $ (718,000) $ (71,000) (515,000) (150,000) Pitino Brey Sales revenues Cost of goods sold Expenses Equity in earnings of Brey Net income Retained earnings, 1/1/18 Net income (above) Dividends declared (862,000) $(366,000) 515,000 185,400 (68,400) 209,000 67,000 0 $ (230,000) $ (90,000) Retained earnings, $ 12/31/18 $ (488,000) $(278,000) (230,000) (90,000) 136,000 27,000 (582,000) $(341,000) Cash and receivables Inventory $ 146,000 $ 98,000 255,000 136,000 Investment in Brey 450,000 0 Land, buildings, and equipment (net) Total assets Liabilities Common stock Retained earnings, 12/31/18 $ (718,000) $ (71,000) (515,000) (150,000) (582,000) (341,000) Total liabilities and $(1,815,000) $(562,000) equities 964,000 328,000 $ 1,815,000 $ 562,000 a. What was the annual amortization resulting from the acquisition-date fair-value allocations? b. Were the intra-entity transfers upstream or downstream? c. What intra-entity gross profit in inventory existed as of January 1, 2018? d. What intra-entity gross profit in inventory existed as of December 31, 2018? e. What amounts make up the $68,400 equity earnings of Brey account balance for 2018? f. What is the net income attributable to the noncontrolling interest for 2018? g. What amounts make up the $450,000 Investment in Brey account balance as of December 31, 2018? h. Prepare the 2018 worksheet entry to eliminate the subsidiary's beginning owners' equity balances. i. Without preparing a worksheet or consolidation entries, determine the consolidation balances for these two companies. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Req A to D Req E Reg F Req G Req H Req I What amounts make up the $450,000 Investment in Brey account balance as of December 31, 2018? Investment in Brey (consideration transferred) $ 342,000 Net income of Brey $ Reported 2016 64,000 2017 80,000 2018 90,000 Total $234,000 Intra-entity gross profit, 12/31/18 (21,000)|| Adjusted net income 2016-2018 213,000 Pitino's ownership 90 % 191,700 Excess amortizations 1121,000, Dividends declared by Brey $ 2016 19,000 2017 23,000 2018 27,000 Total 69,000 F Pitino's ownership Investment in Brey, 12/31/18 < Req F 90 % (62,100) $ 450,000 Req H > Complete this question by entering your answers in the tabs below. Req A to D Req E Req F Req G Req H Req I What amounts make up the $450,000 Investment in Brey account balance as of December 31, 2018? Investment in Brey (consideration transferred) $ 342,000 Net income of Brey $ Reported 2016 64,000 2017 80,000 2018 90,000 Total $234,000 Intra-entity gross profit, 12/31/18 (21,000)| Adjusted net income 2016-2018 213,000 Pitino's ownership 90 % 191,700 Excess amortizations (21,600) Dividends declared by Brey $ 2016 19,000 2017 23,000 2018 27,000 Total 69,000 F Pitino's ownership 90 % (62,100) Investment in Brey, 12/31/18 F450,000 < Req F Reg H>