On January 1, 2023, Perlman Corporation exchanged $1,710,000 cash for 90 percent of the outstanding voting stock of Stein Company. The consideration transferred by Perlman provided a reasonable basis for assessing the total January 1, 2023, fair value of Stein Company. At the acquisition date, Stein reported the following owners' equity amounts in its balance sheet: In determining its acquisition offer, Perlman noted that the values for Stein's recorded assets and liabilities approximated their fair values. Perlman also observed that Stein had developed internally a software with an assessed fair value of $800,000 that was not reflected on Stein's books. Perlman expected both cost and revenue synergies from the combination. At the acquisition date, Perlman prepared the following fair-value allocation schedule: \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{9}{|c|}{ PERLMAN CORPORATION AND STEIN COMPANY } \\ \hline \multicolumn{9}{|c|}{ Consolidation Worksheet } \\ \hline \multicolumn{9}{|c|}{ For Year Ending December 31, 2024} \\ \hline \multirow{2}{*}{ Accounts } & \multirow{2}{*}{\multicolumn{2}{|c|}{ Perlman }} & \multirow{2}{*}{\multicolumn{2}{|c|}{ Stein }} & \multicolumn{2}{|c|}{ Consolidation Entries } & \multirow{2}{*}{\begin{tabular}{c} Noncontrolling \\ Interest \end{tabular}} & \multirow{2}{*}{\begin{tabular}{c} Consolidated \\ Totals \end{tabular}} \\ \hline & & & & & Debit & Credit & & \\ \hline Revenues & $ & (1,843,000) & $ & (675,000) & & & & \\ \hline Cost of goods sold & & 1,100,000 & & 322,000 & & & & \\ \hline Depreciation expense & & 125,000 & & 120,000 & & & & \\ \hline Amortization expense & & 275,000 & & 11,000 & & & & \\ \hline Interest expense & & 27,500 & & 7,000 & & & & \\ \hline Equity in income of Stein & & (121,500) & & 0 & & & & \\ \hline Separate company net income & $ & (437,000) & $ & (215,000) & & & & \\ \hline \multicolumn{9}{|l|}{ Consolidated net income } \\ \hline \multicolumn{9}{|l|}{ To noncontrolling interest } \\ \hline \multicolumn{9}{|l|}{ To Perlman Company } \\ \hline Retained earnings, 1/1 & $ & (2,625,000) & $ & (395,000) & & & & \\ \hline Net income & & (437,000) & & (215,000) & & & & \\ \hline Dividends declared & & 350,000 & & 25,000 & & & & \\ \hline Retained earnings, 12/31 & $ & (2,712,000) & $ & (585,000) & & & & \\ \hline Current assets & $ & 1,204,000 & $ & 430,000 & & & & \\ \hline Investment in Stein & & 1,854,000 & & 0 & & & & \\ \hline Software & & 0 & & 0 & & & & \\ \hline Buildings and equipment & & 931,000 & & 863,000 & & & & \\ \hline Copyrights & & 950,000 & & 107,000 & & & & \\ \hline \multicolumn{9}{|l|}{ Goodwill } \\ \hline Total assets & $ & 4,939,000 & $ & 1,400,000 & & & & \\ \hline Accounts payable & $ & (485,000) & $ & (200,000) & & & & \\ \hline Notes payable & & (542,000) & & (155,000) & & & & \\ \hline \multicolumn{9}{|l|}{ Noncontrolling interest in Stein } \\ \hline Common stock & & (900,000) & & (400,000) & & & & \\ \hline Additional paid-in capital & & (300,000) & & (60,000) & & & & \\ \hline Retained earnings, 12/31 & & (2,712,000) & & (585,000) & & & & \\ \hline Total liabilities and equities & $ & (4,939,000) & $ & (1,400,000) & & & & \\ \hline \end{tabular} If instead the noncontrolling interest's acquisition-date fair value is assessed at $167,500, what changes would be evident in the consolidated statements? On January 1, 2023, Perlman Corporation exchanged $1,710,000 cash for 90 percent of the outstanding voting stock of Stein Company. The consideration transferred by Perlman provided a reasonable basis for assessing the total January 1, 2023, fair value of Stein Company. At the acquisition date, Stein reported the following owners' equity amounts in its balance sheet: In determining its acquisition offer, Perlman noted that the values for Stein's recorded assets and liabilities approximated their fair values. Perlman also observed that Stein had developed internally a software with an assessed fair value of $800,000 that was not reflected on Stein's books. Perlman expected both cost and revenue synergies from the combination. At the acquisition date, Perlman prepared the following fair-value allocation schedule: \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{9}{|c|}{ PERLMAN CORPORATION AND STEIN COMPANY } \\ \hline \multicolumn{9}{|c|}{ Consolidation Worksheet } \\ \hline \multicolumn{9}{|c|}{ For Year Ending December 31, 2024} \\ \hline \multirow{2}{*}{ Accounts } & \multirow{2}{*}{\multicolumn{2}{|c|}{ Perlman }} & \multirow{2}{*}{\multicolumn{2}{|c|}{ Stein }} & \multicolumn{2}{|c|}{ Consolidation Entries } & \multirow{2}{*}{\begin{tabular}{c} Noncontrolling \\ Interest \end{tabular}} & \multirow{2}{*}{\begin{tabular}{c} Consolidated \\ Totals \end{tabular}} \\ \hline & & & & & Debit & Credit & & \\ \hline Revenues & $ & (1,843,000) & $ & (675,000) & & & & \\ \hline Cost of goods sold & & 1,100,000 & & 322,000 & & & & \\ \hline Depreciation expense & & 125,000 & & 120,000 & & & & \\ \hline Amortization expense & & 275,000 & & 11,000 & & & & \\ \hline Interest expense & & 27,500 & & 7,000 & & & & \\ \hline Equity in income of Stein & & (121,500) & & 0 & & & & \\ \hline Separate company net income & $ & (437,000) & $ & (215,000) & & & & \\ \hline \multicolumn{9}{|l|}{ Consolidated net income } \\ \hline \multicolumn{9}{|l|}{ To noncontrolling interest } \\ \hline \multicolumn{9}{|l|}{ To Perlman Company } \\ \hline Retained earnings, 1/1 & $ & (2,625,000) & $ & (395,000) & & & & \\ \hline Net income & & (437,000) & & (215,000) & & & & \\ \hline Dividends declared & & 350,000 & & 25,000 & & & & \\ \hline Retained earnings, 12/31 & $ & (2,712,000) & $ & (585,000) & & & & \\ \hline Current assets & $ & 1,204,000 & $ & 430,000 & & & & \\ \hline Investment in Stein & & 1,854,000 & & 0 & & & & \\ \hline Software & & 0 & & 0 & & & & \\ \hline Buildings and equipment & & 931,000 & & 863,000 & & & & \\ \hline Copyrights & & 950,000 & & 107,000 & & & & \\ \hline \multicolumn{9}{|l|}{ Goodwill } \\ \hline Total assets & $ & 4,939,000 & $ & 1,400,000 & & & & \\ \hline Accounts payable & $ & (485,000) & $ & (200,000) & & & & \\ \hline Notes payable & & (542,000) & & (155,000) & & & & \\ \hline \multicolumn{9}{|l|}{ Noncontrolling interest in Stein } \\ \hline Common stock & & (900,000) & & (400,000) & & & & \\ \hline Additional paid-in capital & & (300,000) & & (60,000) & & & & \\ \hline Retained earnings, 12/31 & & (2,712,000) & & (585,000) & & & & \\ \hline Total liabilities and equities & $ & (4,939,000) & $ & (1,400,000) & & & & \\ \hline \end{tabular} If instead the noncontrolling interest's acquisition-date fair value is assessed at $167,500, what changes would be evident in the consolidated statements