Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2019, in exchange for $432,000 in cash. The subsidiary's stockholders' equity accounts totaled $416,000, and the noncontrolling interest had a fair value of $48,000 on that day. However, a building (with a ten-year remaining life) in Brey's accounting records was undervalued by $33,000. Pitino assigned the rest of the excess fair value over book value to Brey's patented technology (five-year remaining life).

Brey reported net income from its own operations of $74,000 in 2019 and $90,000 in 2020. Brey declared dividends of $24,000 in 2019 and $28,000 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	$	79,000		$	165,000		$	35,000
2020		111,000			185,000			47,500
2021		115,500			210,000			45,000

At December 31, 2021, Pitino owes Brey $26,000 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	$	(882,000	)		$	(416,000	)
Cost of goods sold		525,000				219,000
Expenses		186,400				78,000
Equity in earnings of Brey		(97,425	)			0
Net income	$	(268,025	)		$	(119,000	)
Retained earnings, 1/1/21	$	(508,000	)		$	(298,000	)
Net income (above)		(268,025	)			(119,000	)
Dividends declared		139,000				29,000
Retained earnings, 12/31/21	$	(637,025	)		$	(388,000	)
Cash and receivables	$	156,000			$	108,000
Inventory		305,000				186,000
Investment in Brey		569,925				0
Land, buildings, and equipment (net)		974,000				338,000
Total assets	$	2,004,925			$	632,000
Liabilities	$	(802,900	)		$	(14,000	)
Common stock		(565,000	)			(230,000	)
Retained earnings, 12/31/21		(637,025	)			(388,000	)
Total liabilities and equity	$	(2,004,925	)		$	(632,000	)

1. What was the annual amortization resulting from the acquisition-date fair-value allocations?

2. Were the intra-entity transfers upstream or downstream?

3. What intra-entity gross profit in inventory existed as of January 1, 2021?

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

5. What amounts make up the $97,425 Equity Earnings of Brey account balance for 2021?

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

7. What amounts make up the $569,925 Investment in Brey account balance as of December 31, 2021?

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

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

Cannot figure out #7 Requirement G

Complete this question by entering your answers in the tabs below. Req A to D Req E ReqF Req G Reg H ReqI 100 points What amounts make up the $569,925 Investment in Brey account balance as of December 31, 2021? $ 432,000 $ 74,000 Investment in Brey (consideration transferred) Net income of Brey Reported 2019 Reported 2020 Reported 2021 Reported Total Intra-entity gross profit, 12/31/21 Excess amortizations Adjusted net income 2019-2021 Pitino's ownership Dividends declared by Brey Dividends declared in 2019 90,000 119,000 283,000 (48,750) 234,250 90% 210,825 $ 24,000 Dividends declared in 2020 Dividends declared in 2021 28,000 29,000 81,000 Dividends declared in Total Pitino's ownership Investment in Brey, 12/31/21 90% (72,900) $ 569,925