Pitino acquired 80 percent of Brey's outstanding shares on January 1, 2016, in exchange for $387,000 in cash. The subsidiary's stockholders' equity accounts totaled $371,000 and the noncontrolling interest had a fair value of $96,750 on that day. However, a building (with a eight-year remaining life) in Brey's accounting records was undervalued by $23,000 Pitino assigned the rest of the excess fair value over book value to Brey's patented technology (five-year remaining life) Brey reported net income from its own operations of $69,000 in 2016 and $85,000 in 2017. Brey declared dividends of $21,500 in 2016 and $25,500 in 2017 Inventory Remaining at transfer price) 42,500 Transfer Price Year-End (at to Pitino Year 2016 2017 2018 Cost to Brey $ 74,000 88,000 101,750 $ 140,000 $30,000 160,000 185,000 60,000 At December 31, 2018, Pitino owes Brey $21,000 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