Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2019, in exchange for $405,000 in cash. The subsidiary's stockholders' equity accounts totaled $389,000, and the noncontrolling interest had a fair value of $45,000 on that day. However, a building (with a nine-year remaining life) in Brey's accounting records was undervalued by $27,000. 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 $71,000 in 2019 and $87,000 in 2020. Brey declared dividends of $22,500 in 2019 and $26,500 in 2020.

Brey sells inventory to Pitino as follows:

YearCost to BreyTransfer Price to PitinoInventory Remaining at Year-End (at transfer price)2019$76,000 $150,000 $32,000 2020 102,000 170,000 44,500 2021 126,750 195,000 70,000

At December 31, 2021, Pitino owes Brey $23,000 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.

PitinoBreySales revenues$(876,000) $(401,000)Cost of goods sold 522,000 216,000 Expenses 186,100 72,000 Equity in earnings of Brey (85,320) 0 Net income$(253,220) $(113,000)Retained earnings, 1/1/21$(502,000) $(292,000)Net income (above) (253,220) (113,000)Dividends declared 136,000 26,000 Retained earnings, 12/31/21$(619,220) $(379,000)Cash and receivables$153,000 $105,000 Inventory 290,000 171,000 Investment in Brey 528,300 0 Land, buildings, and equipment (net) 971,000 335,000 Total assets$1,942,300 $611,000 Liabilities$(773,080) $(26,000)Common stock (550,000) (206,000)Retained earnings, 12/31/21 (619,220) (379,000)Total liabilities and equity$(1,942,300) $(611,000)

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, 2021?

What intra-entity gross profit in inventory existed as of December 31, 2021?

What amounts make up the $85,320 Equity Earnings of Brey account balance for 2021?

What is the net income attributable to the noncontrolling interest for 2021?

What amounts make up the $528,300 Investment in Brey account balance as of December 31, 2021?

Prepare the 2021 worksheet entry to eliminate the subsidiarys beginning owners equity balances.

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