Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2019, in exchange for $459,000 in cash. The subsidiary's stockholders' equity accounts totaled $443,000, and the noncontrolling interest had a fair value of $51,000 on that day. However, a building (with a ten-year remaining life) in Brey's accounting records was undervalued by $39,000. 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 $77,000 in 2019 and $93,000 in 2020. Brey declared dividends of $25,500 in 2019 and $29,500 in 2020. Brey sells inventory to Pitino as follows: Year Cost to Brey 2019 $ 82,000 2020 2021 100,000 123,750 Inventory Remaining at Transfer Price to Pitino $ 180,000 200,000 225,000 Year-End (at transfer price) $ 38,000 50,500 60,000 At December 31, 2021, Pitino owes Brey $29,000 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 $ (888,000) $(431,000) 528,000 186,700 222,000 (101,115) 84,000 0 $ (274,415) $(125,000) $ (514,000) $(304,000) Net income (above) (274,415) (125,000) Dividends declared 142,000 32,000 Retained earnings, 12/31/21 $ (646,415) $(397,000) Cash and receivables $ 159,000 $ 111,000 Inventory 320,000 201,000 Investment in Brey 592,470 0 Land, buildings, and equipment (net) 977,000 360,000 Total assets $ 2,048,470 $ 672,000 Liabilities $ (822,055) $ (21,000) Common stock (580,000) (254,000) Retained earnings, 12/31/21 Total liabilities and equity (646,415) (397,000) $(2,048,470) $(672,000) S genital amortization resulting from the acquisition date fair valu transfers upstream or downstream? What intra entity gross profit in inventory existed as of January 1, 2021? mity gross profit in inventory existed as of December 31, 2021? e. What amounts make up the $101,115 Equity Earnings of Brey account balance for 2021? What is the neKincome attributable to the noncentralling interest for 2021? g. What amounts make up the $592,470 Investment in Brey account balance as of December 31, 2021? h. Prepare the 2021 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. Req A to D Req E Req F Req G Req H Req I What amounts make up the $101,115 Equity Earnings of Brey account balance for 2021? Brey's reported net income Deferred gross profit Deferred gross profit Excess fair value amortization Adjusted subsidiary net income Brey's reported net income Equity in earnings of Brey 90 % What amounts make up the $592,470 Investment in Brey account balance as of December 31, 2021? Investment in Brey (consideration transferred) Net income of Brey Dividends declared by Brey 0 % 0 % $ 0 Consolidation Worksheet Entries 1 Prepare entry S Note: Enter debits before credits. Transaction 1 Accounts Debit Credit Record entry Clear entry view general journal < my 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 Consolidated Balance