Problem $5-23($Algo$)($LO $5-1,5-2,5-3,5-4,5-5,5-7)$

Pitino acquired $90$ percent of Brey's outstanding shares on January $1,2022,$ in exchange for $$423,000$ in cash. The subsidiary's

stockholders' equity accounts totaled $$407,000,$ and the noncontrolling interest had a fair value of $$47,000$ on that day. However, a

building $($with a ten$-$year remaining life$)$ in Brey's accounting records was undervalued by $$31,000.$ 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 $$73,000$ in $2022$ and $$89,000$ in $2023.$ Brey declared dividends of $$23,500$ in

$2022$ and $$27,500$ in $2023.$

Brey sells inventory to Pitino as follows:

At December $31,2024,$ Pitino owes Brey $$25,000$ for inventory acquired during the period.

The separate account balances for the two companies at December $31,2024,$ and the year then ended follow.

Note: Parentheses indicate a credit balance.

Required:

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 $1,2024?$

d$.$ What intra$-$entity gross profit in inventory existed as of December $31,2024?$

e$.$ What amounts make up the $$101,835$ Equity in Earnings of Brey account balance for $2024?$

f$.$ What is the net income attributable to the noncontrolling interest for $2024?$

g$.$ What amounts make up the $$558,630$ Investment in Brey account balance as of December $31,2024?$

h$.$ Prepare the $2024$ 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.