Pitino acquired $90$ percent of Brey's outstanding shares on January $1,2022,$ in exchange for $$351,000$ in cash. The subsidiary's stockholders' equity accounts totaled $$335,000,$ and the noncontrolling interest had a fair value of $$39,000$ on that day. However, a building $($with a ten$-$year remaining life$)$ in Brey's accounting records was undervalued by $$15,000.$ 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 $$65,000$ in $2022$ and $$81,000$ in $2023.$ Brey declared dividends of $$19,500$ in $2022$ and $$23,500$ in $2023.$

Brey sells inventory to Pitino as follows:

$\backslash$table$[[$Year$,$Cost to Brey,$\backslash$table$[[$Transfer Price to$],[$Pitino$]],\backslash$table$[[$Inventory Remaining$],[$at Year$-$End $($at$],[$transfer price$)]]],[2022,$$$70,000,$$$120,000,$$$26,000$