Q.1
Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2019, in exchange for $396,000 in cash. The subsidiary's stockholders' equity accounts totaled $380,000, and the noncontrolling interest had a fair value of $44,000 on that day. However, a building (with a ten-year remaining life) in Brey's accounting records was undervalued by $25,000. 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 $70,000 in 2019 and $86,000 in 2020. Brey declared dividends of $22,000 in 2019 and $26,000 in 2020. Brey sells inventory to Pitino as follows: Inventory Remaining at Cost to Transfer Price Year-End (at transfer Year Brey to Pitino price) 2019 $ 75,000 $ 245,000 2020 82,500 165,000 2021 95.000 190,000 65,000 os 31,000 43,500 At December 31, 2021, Pitino owes Brey $22,000 for Inventory acquired during the period. The following separate account balances are for these two companies for December 31, 2021, ond the year then ended, Note: Parentheses indicate a credit balance.. Sales revenues Coat of goods sold Expenses Equity in earnings of Brey Net Income Retained earnings, 1/1/21 Net Income (above) Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in Brey Land, buildings, and equipment (net) Pitino Brey $ (874,000) $(396,000) 521,000 215,000 186,000 70,000 (80.100) 0 $ (247,100) $(111,000) $ (500,000) $(290,000) (247,100) (111,000) 135,000 25,000 $ (612,100) $(376,000) $ 152,000 $ 104,000 285,000 166,000 510,975 0 970,000 334,000 $1.917.975 S604.000 Next > SO 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 2021? d. What intra-entity gross profit in Inventory existed as of December 31, 2021? e. What amounts make up the $80,100 Equity Earnings of Brey account balance for 2021? 4. What is the net income attributable to the noncontrolling Interest for 2021? g. What amounts make up the $510,975 Investment in Brey account balance as of December 31, 20212 h. Prepare the 2021 worksheet entry to eliminate the subsidiary's beginning owners' equity balances. 1. Without preparing a worksheet or consolidation entries, determine the consolidation balances for these two companies. Complete this question by entering your answers in the tabs below. Reg A to D Reg Reg Reg 6 Reg Reg1 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, 2021? d. What intra-entity gross profit in Inventory existed as of December 31, 2021? Show less Annual amortization b. Intra-entity transfers c. Intr-ontity gross profit, January 1, 2021 d Intra-antity gross profit, December 31, 2021 ReqE> 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 $80,100 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 $510,975 Investment in Brey account balance as of December 31, 2021? h. Prepare the 2021 worksheet entry to eliminate the subsidiary's beginning owners' equity balances. 1. Without preparing a worksheet or consolidation entries, determine the consolidation balances for these two companies. Complete this question by entering your answers in the tabs below. Req A to D Reg E RegF Req G ReqH Reg 1 What amounts make up the $80,100 Equity Earnings of Brey account balance for 2021? % Total liabilities and equity 100 (376,000 $(1,917,975) $(604,000) 13 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, 2021? d. What Intra-entity gross profit in inventory existed as of December 31, 2021? e. What amounts make up the $80,100 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 $510,975 Investment in Brey account balance as of December 31, 2021? h. Prepare the 2021 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. Complete this question by entering your answers in the tabs below. Reg A to D Reg E Req F Req G ReqH ReqI What is the net income attributable to the noncontrolling interest for 2021? Net Income attributable to noncontrolling interest US two companies. Complete this question by entering your answers in the tabs below. Reg A to D Reg E ReqF Reg G Reg H Reg 1 What amounts make up the $510,975 Investment in Brey account balance as of December 31, 2021? Investment in Brey (consideration transferred) Net income of Brey 0 0 % Dividends declared by Brey 0 % $ 0 HG A to D Help 1 RE RF submit ROG HH Rog Prepare the 2021 worksheet entry to eliminate the subsidiary's beginning owners' equity balances. If no entry is required for transaction/event, select "No journal entry required in the rest account hield) 5.25 wiew transaction et Consolidation Worksheet Entries SO 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 2021? d. What intra-entity gross profit in Inventory existed as of December 31, 2021? e. What amounts make up the $80,100 Equity Earnings of Brey account balance for 2021? 4. What is the net income attributable to the noncontrolling Interest for 2021? g. What amounts make up the $510,975 Investment in Brey account balance as of December 31, 20212 h. Prepare the 2021 worksheet entry to eliminate the subsidiary's beginning owners' equity balances. 1. Without preparing a worksheet or consolidation entries, determine the consolidation balances for these two companies. Complete this question by entering your answers in the tabs below. Reg A to D Reg Reg Reg 6 Reg Reg1 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, 2021? d. What intra-entity gross profit in Inventory existed as of December 31, 2021? Show less Annual amortization b. Intra-entity transfers c. Intr-ontity gross profit, January 1, 2021 d Intra-antity gross profit, December 31, 2021 ReqE> 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 $80,100 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 $510,975 Investment in Brey account balance as of December 31, 2021? h. Prepare the 2021 worksheet entry to eliminate the subsidiary's beginning owners' equity balances. 1. Without preparing a worksheet or consolidation entries, determine the consolidation balances for these two companies. Complete this question by entering your answers in the tabs below. Req A to D Reg E RegF Req G ReqH Reg 1 What amounts make up the $80,100 Equity Earnings of Brey account balance for 2021? % Total liabilities and equity 100 (376,000 $(1,917,975) $(604,000) 13 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, 2021? d. What Intra-entity gross profit in inventory existed as of December 31, 2021? e. What amounts make up the $80,100 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 $510,975 Investment in Brey account balance as of December 31, 2021? h. Prepare the 2021 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. Complete this question by entering your answers in the tabs below. Reg A to D Reg E Req F Req G ReqH ReqI What is the net income attributable to the noncontrolling interest for 2021? Net Income attributable to noncontrolling interest US two companies. Complete this question by entering your answers in the tabs below. Reg A to D Reg E ReqF Reg G Reg H Reg 1 What amounts make up the $510,975 Investment in Brey account balance as of December 31, 2021? Investment in Brey (consideration transferred) Net income of Brey 0 0 % Dividends declared by Brey 0 % $ 0 HG A to D Help 1 RE RF submit ROG HH Rog Prepare the 2021 worksheet entry to eliminate the subsidiary's beginning owners' equity balances. If no entry is required for transaction/event, select "No journal entry required in the rest account hield) 5.25 wiew transaction et Consolidation Worksheet Entries
