On January $1,2021,$ Pikes Corporation loaned Venti Company $$322,000$ and agreed to guarantee all of Venti$$s long$-$term debt in exchange for $(1)$ decision$-$making authority over all of Venti$$s activities and $(2)$ an annual management fee of $25$ percent of Venti$$s annual revenues. As a result of the agreement, Pikes becomes the primary beneficiary of Venti $($now a variable interest entity$).$ Pikes$$ loan to Venti stipulated a $7$ percent $($market$)$ rate of interest to be paid annually with principal due in $10$ years.

On January $1,2021,$ Pikes estimated that the fair value of Venti$$s equity shares equaled $$97,000$ while Venti$$s book value was $$77,000.$ Any excess fair over book value at that date was attributed to Venti$$s trademark with an indefinite life.

Because Pikes owns no equity in Venti, all of the acquisition$-$date excess fair over book value is allocated to the noncontrolling interest.

Venti paid Pikes $25$ percent of its $2021$ revenues at the end of the year and recorded the payment in other operating expenses. Venti also paid the interest to Pikes for the loan. On December $31,2021,$ Pikes and Venti submitted the following statements for consolidation. $($Parentheses indicate credit balances.$)$

Pikes Venti

Revenues $ $(814,000)$ $ $(238,000)$

Management fee $(59,500)$

Cost of good sold $643,00091,200$

Other operating expenses $98,00066,200$

Interest income $(22,540)0$

Interest expense $041,200$

Net income $(155,040)(39,400)$

Retained earnings, $1/1(1,384,400)(62,000)$

Net income $(155,040)(39,400)$

Dividends declared $79,4000$

Retained earnings, $12/31(1,460,040)(101,400)$

Current assets $475,00095,000$

Loan receivable from Venti $322,000$

Equipment $($net$)717,000549,000$

Trademark $0147,000$

Total assets $1,514,000791,000$

Current liabilities $(3,960)(114,000)$

Loan payable to Pikes $(322,000)$

Other long$-$term debt $0(238,600)$

Common stock $(50,000)(15,000)$

Retained earnings, $12/31(1,460,040)(101,400)$

Total liabilities and equity $ $(1,514,000)$ $ $(791,000)$