Saved Help Save & Exit Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2019, in exchange for $441,000 in cash. The subsidiary's stockholders' equity accounts totaled $425,000, and the noncontrolling interest had a fair value of $49.000 on that day. However, a building with a ten-year remaining life) in Brey's accounting records was undervalued by $35,000. 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 $75,000 in 2019 and $91,000 in 2020. Brey declared dividends of $24,500 in 2019 and $28,500 in 2020. Brey sells inventory to Pitino as follows: Inventory Renaining at Transfer Price Year-End (at Cost to Brey transfer price) $ 170,000 $ 36,000 190,000 107,500 215,000 50,000 to Pitino Year 2019 2020 2021 $ 80,000 114,000 48,500 At December 31, 2021. Pitino owes Brey $27,000 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. Pitino Brey Sales revenues $ (884,000) $1421,000) Cost of goods sold 525.000 220,00 Expenses 186,500 80,000 Equity in earnings of Brey (93,960) Net Income $ (265,460) $(121,000) Retained earnings, 1/1/21 4510,000 $300,000 Net Income (above) (265,460) (121,000 Dividends declared 140,000 30.000 Retained earnings 12/31/21 $ (635,460) ${391,200) Cash and receivables 157.000 $ 109.000 @ $ 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 incone 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 $ (884,000) $1421,000) 526,000 220,000 186,500 80,000 193,960) $ (265,460) $(121,000) $ (510,000) $300,000) (265,460) (121,000) 140,000 30,000 $ (635, 460) $(391,000) $ 157,000 $ 109,000 310,000 191,000 572,400 975,000 339,000 $ 2,014,400 $ 639,000 $ 898,940) 510,000) (570,000) (238,800) (635,460) (391,000 $12.814,400) 5(639,000) 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 $93.960 Equity Earnings of Broy account balance for 2021? 6. What is the net income attributable to the noncontrolling interest for 2021? g. What amounts make up the $572.400 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 Saved Help Save & Exit Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2019, in exchange for $441,000 in cash. The subsidiary's stockholders' equity accounts totaled $425,000, and the noncontrolling interest had a fair value of $49.000 on that day. However, a building with a ten-year remaining life) in Brey's accounting records was undervalued by $35,000. 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 $75,000 in 2019 and $91,000 in 2020. Brey declared dividends of $24,500 in 2019 and $28,500 in 2020. Brey sells inventory to Pitino as follows: Inventory Renaining at Transfer Price Year-End (at Cost to Brey transfer price) $ 170,000 $ 36,000 190,000 107,500 215,000 50,000 to Pitino Year 2019 2020 2021 $ 80,000 114,000 48,500 At December 31, 2021. Pitino owes Brey $27,000 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. Pitino Brey Sales revenues $ (884,000) $1421,000) Cost of goods sold 525.000 220,00 Expenses 186,500 80,000 Equity in earnings of Brey (93,960) Net Income $ (265,460) $(121,000) Retained earnings, 1/1/21 4510,000 $300,000 Net Income (above) (265,460) (121,000 Dividends declared 140,000 30.000 Retained earnings 12/31/21 $ (635,460) ${391,200) Cash and receivables 157.000 $ 109.000 @ $ 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 incone 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 $ (884,000) $1421,000) 526,000 220,000 186,500 80,000 193,960) $ (265,460) $(121,000) $ (510,000) $300,000) (265,460) (121,000) 140,000 30,000 $ (635, 460) $(391,000) $ 157,000 $ 109,000 310,000 191,000 572,400 975,000 339,000 $ 2,014,400 $ 639,000 $ 898,940) 510,000) (570,000) (238,800) (635,460) (391,000 $12.814,400) 5(639,000) 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 $93.960 Equity Earnings of Broy account balance for 2021? 6. What is the net income attributable to the noncontrolling interest for 2021? g. What amounts make up the $572.400 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