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 falr value of $$39,000$ on that day. However, a bulding $($with a ten$-$year remaining Iife$)$ in Brey's accounting records was undervalued by $$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,$$$70,000,12,000,$& $26,000],[2023,77,000,140,000,38,060],[2024,99,000,165,000,40,000]]$

At December $31,2024,$ Pitino owes Brey $$17,000$ for Inventory acquired during the period.

The separate account balances for the two companles at December $31,2024,$ and the year then ended follow.

Note: Parentheses Indicate a credit balance.

$\backslash$table$[[$Items$,$Pitino,Brey$],[$Sales revenues,$$(864,000),$$$(371,000)$