Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2016, in exchange for $477,000 in cash. The subsidiary's stockholders' equity accounts totaled $461,000 and the noncontrolling interest had a fair value of $53,000 on that day. However, a building (with a ten-year remaining life) in Brey's accounting records was undervalued by $43,000. 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 $79,000 in 2016 and $95,000 in 2017. Brey declared dividends of $26,500 in 2016 and $30,500 in 2017.

Year	Cost to Brey			Transfer Price to Pitino			Inventory Remaining at Year-End (at transfer price)
2016	$	84,000		$	190,000		$	40,000
2017		126,000			210,000			52,500
2018		164,500			235,000			70,000

At December 31, 2018, Pitino owes Brey $31,000 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.

	Pitino				Brey
Sales revenues	$	(892,000	)		$	(441,000	)
Cost of goods sold		530,000				224,000
Expenses		186,900				88,000
Equity in earnings of Brey		(106,380	)			0
Net income	$	(281,480	)		$	(129,000	)
Retained earnings, 1/1/18	$	(518,000	)		$	(308,000	)
Net income (above)		(281,480	)			(129,000	)
Dividends declared		144,000				51,000
Retained earnings, 12/31/18	$	(655,480	)		$	(386,000	)
Cash and receivables	$	161,000			$	113,000
Inventory		330,000				211,000
Investment in Brey		604,440				0
Land, buildings, and equipment (net)		979,000				343,000
Total assets	$	2,074,440			$	667,000
Liabilities	$	(828,960	)		$	(11,000	)
Common stock		(590,000	)			(270,000	)
Retained earnings, 12/31/18		(655,480	)			(386,000	)
Total liabilities and equity	$	(2,074,440	)		$	(667,000	)

1. Prepare the 2018 worksheet entry to eliminate the subsidiarys beginning owners equity balances.

2. Without preparing a worksheet or consolidation entries, determine the consolidation balances for these two companies.