Help Save&Exit Submit Check my work Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2016, in exchange for $486,000 in cash. The subsidiary's stockholders' equity accounts totaled $470,000 and the noncontrolling interest had a fair value of $54,000 on that day. Howevera building (with a ten-year remaining life) in Brey's accounting records was undervalued by $45,000. 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 $80,000 in 2016 and $96,000 in 2017 Brey declared dividends of $27000 in 2016 and $31,000 in 2017 Inventory Remaining at Transfer Price Year-End (at Year 2016 2017 2018 to Brey to Pitino 85,000 195,000 215,000 240,000 transfer price) 41,000 53,000 40,000 118,250 156,000 At December 31, 2018, Pitino owes Brey $32,000 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 Brey $ (894,000) $ (446,000) Sales revenues Cost of goods sold Expenses Equity in earnings of Brey 225,000 90,000 531,000 187,000 (117,090) $ (293,090) $(131,000) (520,000) (310,000) (293,090) (31,000) Net income Retained earnings, 1/1/18 Net income (above) Dividends denlared 145.000 52.000