Req F & I

Pitino acquired 80 percent of Brey's outstanding shares on January 1, 2019, in exchange for $320,000 in cash. The subsidiary's stockholders' equity accounts totaled $304,000, and the noncontrolling interest had a fair value of $80,000 on that day. However, a building (with a eight-year remaining life) in Brey's accounting records was undervalued by $37,000. 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 $76,000 in 2019 and $92,000 in 2020. Brey declared dividends of $25,000 in 2019 and $29,000 in 2020. Brey sells inventory to Pitino as follows: Year 2019 2020 2021 Inventory Remaining at Cost to Transfer Price Year-End (at transfer Brey to Pitino price) $ 81,000 $ 175,000 $ 37,000 107,250 195,000 49,500 132,000 220,000 55,000 At December 31, 2021, Pitino owes Brey $28,000 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. Sales revenues Cost 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) Total assets Liabilities Common stock Retained earnings, 12/31/21 Total liabilities and equity Pitino Brey $ (886,000) $(426,000) 527,000 221,000 186,600 82,000 (85, 480) 0 $ (257,880) $(123,000) $ (512,000) $(302,000) (257,880) (123,000) 141,000 31,000 $ (628,880) $(394,000) $ 158,000 $ 110,000 315,000 196,000 427,780 0 976,000 340,000 $ 1,876, 780 $ 646,000 $ (672,900) $(136,000) (575,000) (116,000) (628,880) (394,000) $(1,876,780) $(646,000) 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, 2021? d. What intra-entity gross profit in inventory existed as of December 31, 2021? e. What amounts make up the $85,480 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 $427,780 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. Req A to D ReqE ReqF ReqG ReqH Reg I What is the net income attributable to the noncontrolling interest for 2021? Net income attributable to noncontrolling interest Complete this question by entering your answers in the tabs below. Reg A to D ReqE Reg F ReqG ReqH ReqI Without preparing a worksheet or consolidation entries, determine the consolidation balances for these two companies. (Input all amounts as positive values.) Consolidated Balance $ 1,092,000 $ 527,725 $ 285,025 0 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 $ 21,370 $ 257,880 $ 512,000 $ 141,000 $ 628,880 $ 240,000 $ 489,000 $ 0 $ 1,339, 125 $ 23,600 $ 2,091,725 $ 780,900 $ 106,945 $ 575,000 $ 628,880 $ 2,091,725