Question

first four parts done, need rest please.

Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2016, in exchange for $405,000 in cash. The subsidiarys stockholders' equity accounts totaled $389,000 and the noncontrolling interest had a fair value of $45,000 on that day. However a building (with a nine-year remaining life) in Brey's accounting records was undervalued by $27,000. 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 $71,000 in 2016 and $87,000 in 2017 Brey declared dividends of $22,500 in 2016 and $26.500 in 2017 Year 2016 2017 2018 Cost to Brey $ 76,000 102,000 126,750 Transfer Price to Pitino $ 150,000 170,000 195,000 Inventory Remaining at Year-End (at transfer price) $32,000 44,500 70,000 At December 31, 2018. Pitino owes Brey $23.000 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. Note: Parentheses indicate a credit balance Pitino (876,000) 522.000 136,100 S (401,000) 215.000 72.000 Sales revenues Cost of goods sold Expenses Finns

Answer 1

X consolidation - Microsoft Excel Ca X Data Home Insert Page Layout Formulas Review View Cut E AutoSum A A EWrap Text General Calibri 11 Copy Fill Paste в I 1 Merge & Center % Sort & Find & .00 .00 0 Conditional Format Cell Insert Delete Format BIU Format Painten Clear Formatting as Table Styles Filter Select Editing Number Clipboard Font Alignment Styles Cells fDebit D110 B C E F G Н K 78 $ e) Brey's reported net income 79 1,13,000.00 $ Less: Fair value amortization -11,500.00 80 $ unrealized gross profit 81 17,800.00 $ Less:Gross profit deferred due to closing inventory 82 -24,500.00 Adjusted net income of Brey's 83 94,800.00 Petino's share in Brey's income-($94800*90%) $ 84 85,320.00 85 $ f) Adjusted net income of Brey's(Calculated in (5) above 94,800.00 86 Non controlling interest in Brey's income-($94800*10%) $ 87 9,480.00 88 g Investment in Brey's (Account balance December 31st,2018) 89 Consideration transferred $ 90 4,05,000.00 Net Income Year 2016 91 $ 71,000.00 92 Year 2017 93 87,000.00 Year 2018 $ 94 1,13,000.00 Total $ 95 2,71,000.00 Less: Unrealized gross profit Realized Income of 2018 $ 96 24,500.00 97 2,46,500.00 Petino's share=($246500*90%) Excess amortization for three years=($11500*3*90%) Dividend Paid by Brey's 98 2,21,850.00 $ -31,050.00 99 100 Year 2016 Sheet21 Sheet22 $ Sheet27 22,500.00 Sheet28 Sheet29 101 Sheet24 Sheet23 Sheet25 Sheet26 Sheet19 100% Ready Average: 240100 Count: 3 Circular References Sum: 480200 21:45 е (? TENG 01-11-2019

X consolidation - Microsoft Excel Ca X Data Home Insert Page Layout Formulas Review View Cut E AutoSum A A Wrap Text General Calibri 11 Copy Fill Paste в I 1 Merge & Center % Sort & Find & .00 .00 0 Conditional Format Cell Insert Delete Format BIU Format Painten Clear Formatting as Table Styles Filter Select Editing Alignment Number Clipboard Font Styles Cells fDebit D110 B C D F G Н K 88 g) Investment in Brey's (Account balance December 31st,2018) 89 Consideration transferred $ 90 4,05,000.00 Net Income 91 Year 2016 $ 71,000.00 92 $ Year 2017 87,000.00 93 Year 2018 $ 1,13,000.00 94 Total $ 95 2,71,000.00 Less: Unrealized gross profit Realized Income of 2018 Petino's share=($246500*90%) Excess amortization for three years-($11500*3*90%) Dividend Paid by Brey's $ 96 24,500.00 97 2,46,500.00 $ 98 2,21,850.00 99 -31,050.00 100 Year 2016 Year 2017 $ 22,500.00 101 $ 102 26,500.00 Year 2018 103 26,000.00 Total dividend Petino's share in dividend-($75000*90%) Investment in Brey's account balance December 31st,2018 $ 104 75,000.00 $ 105 -67,500.00 $ 106 5,28,300.00 107 h) 108 109 Entry S 110 111 4 General,Journal Debit Credit ICommon Stock 1/1/2018. Sheet21 Sheet22 2.06.000.00 Sheet19 Sheet26 Sheet27 Sheet25 Sheet23 Sheet24 Sheet28 Sheet29 100% Ready Average: 240100 Count: 3 Sum: 480200 Circular References 21:45 е (? EAENG 01-11-2019

X consolidation - Microsoft Excel Ca X Data Home Insert Page Layout Formulas Review View Cut E AutoSum A A Wrap Text General Calibri 11 Copy Fill Paste в I 1 Merge & Center % Sort & Find & .00 .00 0 Conditional Format Cell Insert Delete Format BIU Format Painten Clear Formatting as Table Styles Filter Select Editing Number Clipboard Font Alignment Styles Cells 119 A C E F G Н K 107 h) 108 Entry S 109 110 General,Journal Debit Credit Common Stock 1/1/2018 Retained Earnings 1/1/2018=($292000-$17800) To Investment in Brey's=($206000+$274200)*90% To Non controlling Interest=($206000+$274200)*10% 111 2,06,000.00 $ 112 2,74,200.00 113 4,32,180.00 $ 114 48,020.00 115 (i) Sales Revenue 116 $ 8,76,000.00 117 Pitino $ 118 Brey 4,01,000.00 Less: Intra entry sales 119 -1,95,000.00 Total Sales Revenue 120 $ 10,82,000.00 121 Cost of goods sold 122 $ 123 Pitino 5,22,000.00 $ 124 Brey 2,16,000.00 125 Less: -1,95,000.00 Amount before adjustment($537000+$231000-$270000) Add: Unrealized gross profit 2017 $ 126 5,43,000.00 $ 127 -17,800.00 $ Less:Unrealized gross profit 2018 24,500.00 128 Cost of goods sold 129 5,49,700.00 120 4 Sheet26 Sheet27 Sheet22 Sheet24 Sheet25 Sheet28 Sheet29 Sheet19 Sheet21 Sheet23 100% Ready Circular References 21:45 е 1ENG ? 01-11-2019

X consolidation - Microsoft Excel Ca X Data Home Insert Page Layout Formulas Review View Cut E AutoSum A A Wrap Text General Calibri 11 Copy Fill Paste в I E Merge & Center % Sort & Find & .00 .00 0 Conditional Format Cell Insert Delete Format BIU Format Painten Clear Formatting as Table Styles Filter Select Editing Number Clipboard Font Alignment Styles Cells focx 119 A. C E F G Н K 131 Expenses $ 132 Pitino 1,86,100.00 $ 133 Brey 72,000.00 $ Add: Annual amortization 134 11,500.00 Expenses 135 2,69,600.00 136 137 Investment income $ Brey's(elimination of inter entity adjustment) 138 Non controlling interest in Brey's income 9,480.00 139 140 141 Consolidated net income to Parent 2,53,220.00 142 Retained Earnings 143 144 $ Pitino 5,02,000.00 145 Dividend Paid 146 $ 147 1,36,000.00 Pitino 148 Retained Earnings 31/12/2018 149 $ 6,19,220.00 150 Pitino 151 152 Cash & Receivables $ Pitino 153 1,53,000.00 1,05,000.00 Sheet28 Sheet29 154 4 Brey Sheet21 Sheet27 Sheet25 Sheet26 Sheet19 Sheet22 Sheet23 Sheet24 100% Ready Circular References 21:45 е (? EENG 01-11-2019

X consolidation - Microsoft Excel Ca X Data Home Insert Page Layout Formulas Review View Cut E AutoSum AA Wrap Text General Calibri 11 Copy Fill Paste в I % Sort & Find & EE Merge & Center .00 .00 0 Conditional Format Cell Insert Delete Format BIU Format Painter Clear Formatting as Table Styles Filter Select Editing Alignment Number Clipboard Font Styles Cells 119 A B C E F G Н K Cash & Receivables 152 $ 153 Pitino 1,53,000.00 154 $ Brey 1,05,000.00 Less: Intera-entity balance(As per adjustment) $ 155 -23,000.00 $ Cash & Receivables 156 2,35,000.00 157 158 Inventory $ Pitino 159 2,90,000.00 1,71,000.00 160 Brey Less: Unrealized gross profit in 2018 -24,500.00 161 $ 4,36,500.00 162 Inventory 163 $ Investment in Brey(Elimination of inter entity balance) 164 165 Land,Building and Equipment 166 $ Pitino 167 9,71,000.00 3,35,000.00 168 Brey Add: Building undervalued Less: Annual amortization for 3 years-($3000*3) $ 27,000.00 169 170 $ -9,000.00 Land,Building and Equipment $ 171 13,24,000.00 172. Patented Technology 173 Patented Technology Less: Annual amortization for 3 years-($11000*3) Sheet21 Sheet22 Sheet23 Sheet24 $ 174 34,000.00 175 -25,500.00 Sheet28 Sheet29 Sheet27 Sheet19 Sheet25 Sheet26 100% Ready Circular References 21:46 е 1ENG (? 01-11-2019 #

X consolidation - Microsoft Excel Ca X Data Home Insert Page Layout Formulas Review View Cut E AutoSum A A Wrap Text General Calibri 11 Copy Fill Paste в I 1 Merge & Center % Sort & Find & .00 .00 0 Conditional Format Cell Insert Delete Format BIU Format Painter Clear Formatting as Table Styles Filter Select Editing Number Clipboard Font Alignment Styles Cells fix 119 A. C E F G Н K Patented Technology 173 $ 174 Patented Technology Less: Annual amortization for 3 years ($11000*3) Patented Technology 34,000.00 $ 175 -25,500.00 $ 176 8,500.00 177 178 179 Liabilities 180 $ 7,73,080.00 181 Pitino $ 182 Brey 26,000.00 Less: Intra -entity balance(As per adjustment given) $ 183 -23,000.00 184 $ Liabilities 7,76,080.00 185 $ Non controlling Interest 186 58,700.00 187 188 189 Common stock $ 190 Pitino 5,50,000.00 191 Retained Earnings 192 $ 193 Pitino 6,19,220.00 194 195 196 4 Sheet19 Sheet21 Sheet24 Sheet25 Sheet26 Sheet27 Sheet28 Sheet22 Sheet23 Sheet29 100% Ready Circular References 21:46 е 1ENG (? 01-11-2019 #

X consolidation - Microsoft Excel Ca X Data Home Insert Page Layout Formulas Review View Cut E AutoSum A A EWrap Text General Calibri 11 Copy Fill Paste в I 1 Merge & Center % Sort & Find & .00 .00 0 Conditional Format Cell Insert Delete Format BIU Format Painter Clear Formatting as Table Styles Filter Select Editing Alignment Number Clipboard Font Styles Cells fix 119 A C D E F G H K Calculation of Non Controlling Interest 197 Non controlling Interest in December 31st 2018 Fair value of non controlling interest 198 $ 199 45,000.00 Net Income 200 Year 2016 $ 201 71,000.00 $ Year 2017 202 87,000.00 Year 2018 $ 1,13,000.00 203 Total $ 204 2,71,000.00 Less: Unrealized gross profit Realized Income of 2018 share of non controlling interest-($246500*10%) Excess amortization for three years-($11500*3*10%) Dividend Paid by Brey's $ 205 24,500.00 $ 206 2,46,500.00 $ 207 24,650.00 208 -3,450.00 209 Year 2016 Year 2017 $ 22,500.00 210 $ 211 26,500.00 Year 2018 Total dividend Non controlling interest in dividend=($122000* 10%) Non controlling Interest in December 31st 2018 212 26,000.00 $ 213 75,000.00 $ 214 -7,500.00 $ 215 58,700.00 216 Consolidated Balance 217 Sales Revenue=(A) Cost of goods sold=(B) Expenses (C) Sheet21 Sheet22 218 $ 10,82,000.00 $ 219 5,49,700.00 220 4 2,69.600.00 Sheet28 Sheet29 Sheet24 Sheet27 Sheet19 Sheet25 Sheet26 S Sheet23 100% Ready Circular References 21:46 е 1ENG (? 01-11-2019

X consolidation - Microsoft Excel Ca X Data Home Insert Page Layout Formulas Review View Cut E AutoSum AA Wrap Text General Calibri 11 Copy Fill Paste % Sort & Find & B I U EE Merge & Center .00 .00 0 Conditional Format Cell Insert Delete Format Format Painter Clear Formatting as Table Styles Filter Select Editing Alignment Number Clipboard Font Styles Cells focx 119 A. C D E F G Н K $ Non controlling Interest in December 31st 2018 215 58,700.00 216 Consolidated Balance 217 218 Sales Revenue=(A) Cost of goods sold=(B) Expenses-(C) Equity in earnings of brey's Non controlling interest in consolidated net income=(D) Consolidated net income to Parent=(E )=(A)-(B)-(C)-(D) Retained earnings 1/1-(F) Dividend Declared-(G) Retained earnings 31/1-(E)+(F)-(G) Cash & Receivables 10,82,000.00 5,49,700.00 $ 219 220 2,69,600.00 221 0 $ 222 9,480.00 $ 223 2,53,220.00 $ 5,02,000.00 224 $ 225 1,36,000.00 $ 6,19,220.00 226 $ 2,35,000.00 227 Inventory Investment in Brey's Land,Building and Equipment Patented Technology 228 4,36,500.00 229 $ 13,24,000.00 230 $ 231 8,500.00 Total Assets 232 $ 20,04,000.00 Liabilities $ 233 7,76,080.00 Non Controlling interest in Brey 31/12 Common Stock Retained Earnings $ 234 58,700.00 $ 235 5,50,000.00 236 $ 6,19,220.00 Total Liabilities and stockholder's Equity 237 $ 20,04,000.00 ר 229 Sheet23 Sheet24 Sheet26 Sheet27 Sheet21 4 Sheet22 Sheet25 Sheet28 Sheet29 Sheet19 100% Ready Circular References 21:46 е 1ENG ? 01-11-2019