Pitino acquired 90 percent of Brey’s outstanding shares on January 1, 2016, in exchange for $342,000 in cash. The subsidiary’s stockholders’ equity accounts totaled $326,000

Pitino acquired 90 percent of Brey’s outstanding shares on January 1, 2016, in exchange for $342,000 in cash. The subsidiary’s stockholders’ equity accounts totaled $326,000 and the noncontrolling interest had a fair value of $38,000 on that day. However, a building (with a nine-year remaining life) in Brey’s accounting records was undervalued by $18,000. Pitino assigned the rest of the excess fair value over book value to Brey’s patented technology (six-year remaining life). Brey reported net income from its own operations of $64,000 in 2016 and $80,000 in 2017. Brey declared dividends of $19,000 in 2016 and $23,000 in 2017. Brey sells inventory to Pitino as follows: At December 31, 2018, Pitino owes Brey $16,000 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. Credits are indicated by parentheses. Answer each of the following questions: a. was the annual amortization resulting from the acquisition-date fair-value allocations? b. Were the intra-entity transfers upstream or downstream? c. intra-entity gross profit in inventory existed as of January 1, 2018? d. intra-entity gross profit in inventory existed as of December 31, 2018? e. amounts make up the $68,400 Equity Earnings of Brey account balance for 2018? f. is the net income attributable to the noncontrolling interest for 2018? g. amounts make up the $450,000 Investment in Brey account balance as of December 31, 2018? h. Prepare the 2018 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. : Transfer Price
to Pitino
Inventory Remalning
at Year-End
(at transfer price)
Year
Cost to Brey
2016
$69,000
$115,000
$25,000
37,500
50,000
2017
81,000
160,000
92,800 : Pitino
Brey
Sales revenues
Cost of goods sold
Expenses…..
Equity in earnings of Brey
$ (862,000)
515,000
$(366,000)
209,000
185,400
67,000
(68,400)
-0-
$ (230,000)
$ (488,000)
(230,000)
136,000
Net income
$ (90,000)
Retained earnings, 1/1/18
Net income (above)
Dividends declared
$(278,000)
(90,000)
27,000
$(341,000)
$ (582,000)
$ 146,000
255,000
450,000
964,000
$ 1,815,000
$ (718,000)
(515,000)
(582,000)
$(1,815,000)
Retained earnings, 12/31/18
Cash and receivables
Inventory …
Investment in Brey …
Land, buildings, and equipment (net)
$ 98,000
136,000
-0-
328,000
$ 562,000
$ (71,000)
(150,000)
(341,000)
$(562,000)
Total assets
Liabilities
Common stock
Retained earnings, 12/31/18
Total liabilities and equities.

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more