Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2016, in exchange for $567,000 in cash. The subsidiary's stockholders' equity accounts totaled $551,000 and the noncontrolling interest had a fair value of $63,000 on that day. However, a building (with a ten-year remaining life) in Brey's accounting records was undervalued by $38,000. 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 $89,000 in 2016 and $105,000 in 2017. Brey declared dividends of $31,500 in 2016 and $35,500 in 2017. Year 2016 2017 2018 Cost to Brey $ 94,000 143,000 171,000 Transfer Price to Pitino $ 240,000 260,000 285,000 Inventory Remaining at Year-End (at transfer price) $ 50,000 62,000 65,000 At December 31, 2018, Pitino owes Brey $41,000 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. Sales revenues Cost of goods sold Expenses Equity in earnings of Brey Net income Retained earnings, 1/1/18 Net income (above) Dividends declared Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Brey Land, buildings, and equipment (net) Total assets Liabilities Common stock Retained earnings, 12/31/18 Total liabilities and equity Pitino $ (912,000) 540,000 187,900 (125,010) $ (309,110) $ (538,000) (309,110) 154,000 $ (693,110) $ 171,000 380,000 704,700 989.000 $ 2,244,700 $ (911,590) (640,000) (693,110) $(2,244,700) Brey $ (491,000) 234,000 108,000 0 $ (149,000) $ (328,000) (149,000) 61,000 $ (416,000) $ 123,000 310,000 0 353,000 $ 786,000 $ (20,000) (350,000) (416,000) $ (786,000) 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 $125,010 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 $704,700 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. Without preparing a worksheet or consolidation entries, determine the consolidation balances for these two companies. 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