Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2019, in exchange for $558,000 in cash. The subsidiary's stockholders' equity accounts totaled $542,000, and the noncontrolling interest had a fair value of $62,000 on that day. However, a building (with a ten-year remaining life) in Brey's accounting records was undervalued by $36,000. Pitino assigned the rest of the excess fair value over book value to Brey's patented technology (six-year remaining life).

Brey reported net income from its own operations of $88,000 in 2019 and $104,000 in 2020. Brey declared dividends of $31,000 in 2019 and $35,000 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	$	93,000		$	235,000		$	49,000
2020		153,000			255,000			61,500
2021		182,000			280,000			60,000

At December 31, 2021, Pitino owes Brey $40,000 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	$	(910,000	)		$	(486,000	)
Cost of goods sold		539,000				233,000
Expenses		187,800				106,000
Equity in earnings of Brey		(126,000	)			0
Net income	$	(309,200	)		$	(147,000	)
Retained earnings, 1/1/21	$	(536,000	)		$	(326,000	)
Net income (above)		(309,200	)			(147,000	)
Dividends declared		153,000				60,000
Retained earnings, 12/31/21	$	(692,200	)		$	(413,000	)
Cash and receivables	$	170,000			$	122,000
Inventory		375,000				305,000
Investment in Brey		702,180				0
Land, buildings, and equipment (net)		988,000				352,000
Total assets	$	2,235,180			$	779,000
Liabilities	$	(907,980	)		$	(24,000	)
Common stock		(635,000	)			(342,000	)
Retained earnings, 12/31/21		(692,200	)			(413,000	)
Total liabilities and equity	$	(2,235,180	)		$	(779,000	)

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 $126,000 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 $702,180 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.

Please bold answers 1-9 so its clear what the correct answer is