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:

Year	Cost to Brey			Transfer Price to Pitino			Inventory 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.

	Pitino				Brey
Sales 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	)

Note: Parentheses indicate a credit balance.

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

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

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

"4 ICY ICY 14 ICY.. "44 What amounts make up the $528,300 Investment in Brey account balance as of December 31, 2021? Investment in Brey (consideration transferred) 405,000 Net income of Brey 00 Reported 2019 Reported 2020 Reported 2021 Reported Total Intra-entity gross profit, 12/31/21 Adjusted net income 2019-2021 Pitino's ownership Excess amortizations >>>>> $ 71,000 87,000 113,000 271,000 24,500 246,500 90 % 221,850 34,500 X Dividends declared by Brey Dividends declared in 2019 Dividends declared in 2020 Dividends declared in 2021 Dividends declared in Total Pitino's ownership OOOOOO $ 22,500 26,500 26,000 75,000 90 % 67,500 $ 524,850 Investment in Brey, 12/31/21 Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A to D Reg E Req F Req G Reg H Reg I Prepare the 2021 worksheet entry to eliminate the subsidiary's beginning owners' equity balances. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction Accounts Debit Credit 1 1 206,000 292,000 X Common stock - Brey Retained earnings Investment in Brey Noncontrolling interest in Brey Consolidated Balance 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