Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2016, in exchange for $522,000 in cash. The subsidiary's stockholders' equity accounts totaled $506,000 and the noncontrolling interest had a fair value of $58,000 on that day. However, a building (with a ten-year remaining life) in Brey's accounting records was undervalued by $28,000. 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 $84,000 in 2016 and $100,000 in 2017. Brey declared dividends of $29,000 in 2016 and $33,000 in 2017.

Year	Cost to Brey			Transfer Price to Pitino			Inventory Remaining at Year-End (at transfer price)
2016	$	89,000		$	215,000		$	45,000
2017		141,000			235,000			57,000
2018		156,000			260,000			60,000

At December 31, 2018, Pitino owes Brey $36,000 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.

	Pitino				Brey
Sales revenues	$	(902,000	)		$	(466,000	)
Cost of goods sold		535,000				229,000
Expenses		187,400				98,000
Equity in earnings of Brey		(111,150	)			0
Net income	$	(290,750	)		$	(139,000	)
Retained earnings, 1/1/18	$	(528,000	)		$	(318,000	)
Net income (above)		(290,750	)			(139,000	)
Dividends declared		149,000				56,000
Retained earnings, 12/31/18	$	(669,750	)		$	(401,000	)
Cash and receivables	$	166,000			$	118,000
Inventory		355,000				260,000
Investment in Brey		646,290				0
Land, buildings, and equipment (net)		984,000				348,000
Total assets	$	2,151,290			$	726,000
Liabilities	$	(866,540	)		$	(15,000	)
Common stock		(615,000	)			(310,000	)
Retained earnings, 12/31/18		(669,750	)			(401,000	)
Total liabilities and equity	$	(2,151,290	)		$	(726,000	)

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 $111,150 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 $646,290 Investment in Brey account balance as of December 31, 2018?

H. Prepare the 2018 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.