On January $1,2024,$ Pikes Corporation loaned Venti Company $$311,000$ and agreed to guarantee all of Venti$$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 $10$ percent $($market$)$ rate of interest to be paid annually with principal due in $10$ years.

On January $1,2024,$ Pikes estimated that the fair value of Venti$$s equity shares equaled $$86,000$ while Venti$$s book value was $$66,000.$ 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 $2024$ 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 $31,2024,$ Pikes and Venti submitted the following statements for consolidation. $($Parentheses indicate credit balances.$)$

Accounts Pikes Venti

Revenues $ $(803,000)$ $ $(227,000)$

Management fee $(56,750)0$

Cost of good sold $632,00090,100$

Other operating expenses $87,00065,100$

Interest income $(31,100)0$

Interest expense $040,100$

Net income $(171,850)(31,700)$

Retained earnings, $1/1(1,382,200)(51,000)$

Net income $(171,850)(31,700)$

Dividends declared $77,2000$

Retained earnings, $12/31(1,476,850)(82,700)$

Current assets $415,00084,000$

Loan receivable from Venti $311,0000$

Equipment $($net$)856,000538,000$

Trademark $0136,000$

Total assets $1,582,000758,000$

Current liabilities $(55,150)(103,000)$

Loan payable to Pikes $0(311,000)$

Other long$-$term debt $0(246,300)$

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

Retained earnings, $12/31(1,476,850)(82,700)$

Total liabilities and equity $ $(1,582,000)$ $ $(758,000)$