Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2016, 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 2016 and $93,000 in 2017. Brey declared dividends of $25,500 in 2016 and $29,500 in 2017 Inventory Remaining at transfer price) 50,500 Transfer Price Year-End (at Year 2016 2017 2018 to Pitino Cost to Brey $ 82,000 100,000 123,750 $ 180,000 $ 38,000 200,000 225,000 60,000 At December 31, 2018, Pitino owes Brey $29,000 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 Cost of goods sold Expenses Equity in earnings of Brey $ (888,000) $ (431,000) 528,000 186,700 222,000 84,000 0 (101,115 Net income Retained earnings, 1/1/18 Net income (above) Dividendsdeclared $ (274,415) $ (125,000) $ (514,000) $ (304,000) (274,415) (125,000) 142,000 32,000 $ (646,415) $ (397,000) $159,000 111,000 Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Brey Land, buildings, and equipment (net) 320,000 592,470 977,000 201,000 360,000 Total assets Liabilities Common stock Retained earnings, 12/31/18 $ 2,048,470 672,000 $ (822,055) $ (21,000) (580,000) (254,000) 646,415 397,000 Total liabilities and equity $ (2,048,470) $(672,000) g. What amounts make up the $592,470 Investment in Brey account balance as of December 31, 2018? h. Prepare the 2018 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 What amounts make up the $592,470 Investment in Brey account balance as of December 31, 2018? Investment in Brey (consideration transferred) Net income of Brey Reported 2016 2017 2018 0 Total Intra-entity gross profit, 12/31/18 Adjusted net income 2016-2018 Pitino's ownership Excess amortizations Dividends declared by Brey 2016 2017 2018 Total Pitino's ownership Investment in Brey, 12/31/18 Prepare the 2018 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.) view transaction list transaction list No Transaction Accounts Debit Credit Common stock - Brey Retained earnings Investment in Brey Noncontrolling interest in Brey 254,000 278,750 Required G Required i Consolidated Balance Sales revenues Cost of goods sold Expenses Equity in earnings of Brey Noncontrolling interest in consolidated net income Consolidated net income to parent Retained earnings, 1/1 Dividends declared Retained earnings, 12/31 Cash and receivables Inventory Investment in Brey Land, buildings, and equipment Patented technology Total Assets Liabilities Noncontrolling interest in Brey, 12/31 Common Stock Retained earnings, 12/31 Total liabilities and stockholders' equity Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2016, 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 2016 and $93,000 in 2017. Brey declared dividends of $25,500 in 2016 and $29,500 in 2017 Inventory Remaining at transfer price) 50,500 Transfer Price Year-End (at Year 2016 2017 2018 to Pitino Cost to Brey $ 82,000 100,000 123,750 $ 180,000 $ 38,000 200,000 225,000 60,000 At December 31, 2018, Pitino owes Brey $29,000 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 Cost of goods sold Expenses Equity in earnings of Brey $ (888,000) $ (431,000) 528,000 186,700 222,000 84,000 0 (101,115 Net income Retained earnings, 1/1/18 Net income (above) Dividendsdeclared $ (274,415) $ (125,000) $ (514,000) $ (304,000) (274,415) (125,000) 142,000 32,000 $ (646,415) $ (397,000) $159,000 111,000 Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Brey Land, buildings, and equipment (net) 320,000 592,470 977,000 201,000 360,000 Total assets Liabilities Common stock Retained earnings, 12/31/18 $ 2,048,470 672,000 $ (822,055) $ (21,000) (580,000) (254,000) 646,415 397,000 Total liabilities and equity $ (2,048,470) $(672,000) g. What amounts make up the $592,470 Investment in Brey account balance as of December 31, 2018? h. Prepare the 2018 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 What amounts make up the $592,470 Investment in Brey account balance as of December 31, 2018? Investment in Brey (consideration transferred) Net income of Brey Reported 2016 2017 2018 0 Total Intra-entity gross profit, 12/31/18 Adjusted net income 2016-2018 Pitino's ownership Excess amortizations Dividends declared by Brey 2016 2017 2018 Total Pitino's ownership Investment in Brey, 12/31/18 Prepare the 2018 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.) view transaction list transaction list No Transaction Accounts Debit Credit Common stock - Brey Retained earnings Investment in Brey Noncontrolling interest in Brey 254,000 278,750 Required G Required i Consolidated Balance Sales revenues Cost of goods sold Expenses Equity in earnings of Brey Noncontrolling interest in consolidated net income Consolidated net income to parent Retained earnings, 1/1 Dividends declared Retained earnings, 12/31 Cash and receivables Inventory Investment in Brey Land, buildings, and equipment Patented technology Total Assets Liabilities Noncontrolling interest in Brey, 12/31 Common Stock Retained earnings, 12/31 Total liabilities and stockholders' equity