Pitino acqulred 90 percent of Brey's outstanding shares on January 1, 2016, In exchange for $405,000 In cash. The subsidlary's stockholders' equity accounts totaled $389,000 and the noncontrolling Interest had a falr value of $45,000 on that day. However, a building (with a nine-year remalning life) In Brey's accounting records was undervalued by $27,000. Pltino assigned the rest of the excess falr value over book value to Brey's patented technology (four-year remalning Iife). Brey reported net Income from its own operations of $71,000 In 2016 and $87,000 In 2017. Brey declared dividends of $22,500 In 2016 and $26,500 In 2017 Inventory Remaining at Year-End (at transfer price) Transfer Price to Pitino Year 2816 2817 2818 Cost to Brey $ 76,8ee $ 158,800 $ 32,888 182,8e8 126,758 17e,888 195,8e8 44,588 7e,888 At December 31, 2018, Pltino owes Brey $23,000 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 Sales revenues Cost of goods sold Expenses Equity in earnings of Brey $ (876,808) $ (401,ee8) 216,808 72,8e8 522,8e8 186,188 (85,328 (253,228) (113,ee8) s (502,888) (292,ee8) (253,228) (113,888) Net income Retained earnings, 1/1/18 Net income (above) Dividends declared 136,8e8 26,8e8 $ (619,228) (379,ee8) Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Brey Land, buildings, and equipment (net) $ 153,800 $ 185,8e8 171,888 298,8e8 528, 3e8 971,888 335,8e8 $ 1,942,388 611,8e8 Total assets Liabilities Common stock Retained earnings, 12/31/18 $ (773,888) (26,8e8) 55,88 (26,88e) (379,8ee) 619,2282 379,809) $(1,942,388) (611,8e8) Total liabilities and equity a. What was the annual amortization resulting from the acqulsition-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 $85,320 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 $528,300 Investment In Brey account balance as of December 31, 2018? h. Prepare the 2018 worksheet entry to ellminate the subsidlary's beginning owners' equity balances. l. Without preparing a worksheet or consolidation entries, determine the consolidation balances for these two companies. Req A to D Required E Required F Required GRequired Required I 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? Show less Annual amortization Intra-entity transfers Intra-entity gross profit, January 1, 2018 Intra-entity gross profit, December 31, 2018 $ 11,500 Upstream 517,800 24,500 Req A to D Required E Required F Required G Required H Required I What amounts make up the $85,320 Equity Earnings of Brey account balance for 2018? Brey's reported net income Excess fair value amortization Realized gross profit Deferred gross profit Adjusted subsidiary net income Ownership Equity in earnings of Brey Req A to D Required ERequired F Required GRequired Required I What is the net income attributable to the noncontrolling interest for 2018? Net income attributable to noncontrolling eres Req A to D Required ERequired F Required G Required H Required I What amounts make up the $528,300 Investment in Brey account balance as of December 31, 2018? Investment in Brey (consideration transf Net income of Brey Reported 2016 2017 2018 Total Intra-entity gross profit, 12131/18 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 Req A to D Required ERequired F Required G Required H Required I 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.) No Transaction Accounts Debit Credit Common stock - Brey Retained earnings Noncontrolling interest in Brey Investment in Brey Req A to D Required E Required F Required G Required Required I 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 Noncontrolling interest in Brey, 12/31 Common Stock Retained earnings, 12131 Total liabilities and stockholders' equity