Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2019, in exchange for $549,000 in cash. The subsidiary's stockholders' equity accounts totaled $533,000, and the noncontrolling interest had a fair value of $61,000 on that day. However, a building (with a ten-year remaining life) in Brey's accounting records was undervalued by $34,000. 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 $87,000 in 2019 and $103,000 in 2020. Brey declared dividends of $30,500 in 2019 and $34,500 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	$	92,000		$	230,000		$	48,000
2020		112,500			250,000			60,000
2021		192,500			275,000			55,000

At December 31, 2021, Pitino owes Brey $39,000 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	$	(908,000	)		$	(481,000	)
Cost of goods sold		538,000				232,000
Expenses		187,700				104,000
Equity in earnings of Brey		(134,550	)			0
Net income	$	(316,850	)		$	(145,000	)
Retained earnings, 1/1/21	$	(534,000	)		$	(324,000	)
Net income (above)		(316,850	)			(145,000	)
Dividends declared		152,000				59,000
Retained earnings, 12/31/21	$	(698,850	)		$	(410,000	)
Cash and receivables	$	169,000			$	121,000
Inventory		370,000				300,000
Investment in Brey		691,650				0
Land, buildings, and equipment (net)		987,000				351,000
Total assets	$	2,217,650			$	772,000
Liabilities	$	(888,800	)		$	(28,000	)
Common stock		(630,000	)			(334,000	)
Retained earnings, 12/31/21		(698,850	)			(410,000	)
Total liabilities and equity	$	(2,217,650	)		$	(772,000	)

1. What amounts make up the $134,550 Equity Earnings of Brey account balance for 2021?

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

3. What amounts make up the $691,650 Investment in Brey account balance as of December 31, 2021?

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

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

a. What was the annual amortization resulting from the acquisition-date fair-value allocatic b. Were the intra-entity transfers upstream or downstream? c. What intra-entity gross profit in inventory existed as of January 1, 2021? d. What intra-entity gross profit in inventory existed as of December 31, 2021? e. What amounts make up the $134,550 Equity Earnings of Brey account balance for 2021 f. What is the net income attributable to the noncontrolling interest for 2021? g. What amounts make up the $691,650 Investment in Brey account balance as of Decem h. Prepare the 2021 worksheet entry to eliminate the subsidiary's beginning owners' equit i. Without preparing a worksheet or consolidation entries, determine the consolidation ba Complete this question by entering your answers in the tabs below. Reg A to D Req E Req F Req G ReqH Reg I What amounts make up the $134,550 Equity Earnings of Brey account balance for 2021? % here to search O c 95 Investment in Brey Land, buildings, and equipment (net) Total assets Liabilities Common stock Retained earnings, 12/31/21 Total liabilities and equity 987,000 351,000 $ 2,217,650 $ 772,000 $ (888,800) $ (28,000) (630,000) (334,000) (698,850) (410,000) $(2,217,650) $ (772,000) a. What was the annual amortization resulting from the acquisition-date fair-value allocati b. Were the intra-entity transfers upstream or downstream? c. What intra-entity gross profit in inventory existed as of January 1, 2021? d. What intra-entity gross profit in inventory existed as of December 31, 2021? e. What amounts make up the $134,550 Equity Earnings of Brey account balance for 202 f. What is the net income attributable to the noncontrolling interest for 2021? g. What amounts make up the $691,650 Investment in Brey account balance as of Decem h. Prepare the 2021 worksheet entry to eliminate the subsidiary's beginning owners' equi- i. Without preparing a worksheet or consolidation entries, determine the consolidation ba Complete this question by entering your answers in the tabs below. Reg A to D ReqE Req F Req G Reg H Req I What is the net Income attributable to the noncontrolling interest for 2021? Net income attributable to noncontrolling interest here to search C 95 a. What was the annual amortization resulting from the acquisition-date fair-value alloc b. Were the intra-entity transfers upstream or downstream? c. What intra-entity gross profit in inventory existed as of January 1, 2021? d. What intra-entity gross profit in inventory existed as of December 31, 2021? e. What amounts make up the $134,550 Equity Earnings of Brey account balance for 2 f. What is the net income attributable to the noncontrolling interest for 2021? g. What amounts make up the $691,650 Investment in Brey account balance as of Dec h. Prepare the 2021 worksheet entry to eliminate the subsidiary's beginning owners' e i. Without preparing a worksheet or consolidation entries, determine the consolidation Complete this question by entering your answers in the tabs below. Req A to D Req E Req F Req G ReqH ReqI What amounts make up the $691,650 Investment in Brey account balance as of December Investment in Brey (consideration transferred) Net income of Brey % Dividends declared by Brey e here to search O O C c Reg A to D Req E Req F Req G ReqH Regi Without preparing a worksheet or consolidation entries, determine the consolidation balances for these all amounts as positive values.) 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