please answer all Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2016, in...

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please answer all
Pitino acquired 90 percent of Breys outstanding shares on January 1, 2016, in exchange for $405,000 in cash. The subsidiarys

Note: Parentheses indicate a credit balance. Sales revenues Cost of goods sold Expenses Equity in earnings of Brey Net income

Total liabilities and equity $(1,942,380) $ (611,000) a. What was the annual amortization resulting from the acquisition date

Help g. What amounts make up the $528,300 Investment in Brey account balance as of December 31, 2018 h. Prepare the 2018 work

g. What amounts make up the $528,300 Investment in Brey account balance as of December 31, 2018 h. Prepare the 2018 worksheet

a. What intra-entity gross profit in inventory existed as of December 31, 2018? e. What amounts make up the $85,320 Equity Ea

wransaction ust Consolidation Worksheet Entries Prepare entry s Note: Enter debits before credits Transaction Accounts Debit

Req A to D Required E Required F Required G Required H Required 1 Without preparing a worksheet or consolidation entries, det

| Sales revenues Cost of goods sold Expenses Equity in earnings of Brey Noncontrolling interest in consolidated net income Co

business accounting

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Answer 1

Answer #1

Dear Student,

As per the HOMEWORKLIB POLICY, only the first four questions should be ansered. Kindly take note of it.

Part A

Consideration transferred	405000
Noncontrolling interest fair value	45000
Subsidiary fair value at acquisition-date	450000
Book value	(389000)
Fair value in excess of book value	61000
Excess fair value assignments		Life	Annual Excess Amortizations
To Building	27000	9 yrs	3000
To Patented technology	34000	4 yrs	8500
Totals			11500

Therefore,

Annual amortizations resulting from the acquisition-date-fair value allocations = $11500

Part B

Transfers are Upstream as Brey sold inventory to Pitino.

Part C

Gross profit on 2017 transfers ($170000-102000)	68000
Gross profit percentage (68000/170000)	40%

Inventory remaining, 12/31/17	44500
Gross profit percentage	40%
Unrealized gross profit, January 1, 2018	17800

Part D

Gross profit on 2018 transfers ($195000-126750)	68250
Gross profit percentage (68250/195000)	35%

Inventory remaining, 12/31/18	70000
Gross profit percentage	35%
Unrealized gross profit, December 31, 2018	24500

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Answer 2

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