Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2016, in exchange for $558,000 in cash. The subsidiary's stockholders' equity accounts totaled $542,000 and the noncontrolling interest had a fair value of $62,000 on that day. However, a building (with a ten-year remaining life) in Brey's accounting records was undervalued by $36,000. Pitino assigned the rest of the excess fair value over book value to Brey's patented technology (six-year remaining life). Brey reported net income from its own operations of $88,000 in 2016 and $104,000 in 2017. Brey declared dividends of $31,000 in 2016 and $35,000 in 2017. Inventory Remaining at transfer price) 61,500 Transfer Price Year-End (at YearCost to Breyto Pitino 2016 2017 2018 $ 93,000 153,000 182,000 235,000 255,000 280,000 $ 49,000 60,000 Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2016, in exchange for $558,000 in cash. The subsidiary's stockholders' equity accounts totaled $542,000 and the noncontrolling interest had a fair value of $62,000 on that day. However, a building (with a ten-year remaining life) in Brey's accounting records was undervalued by $36,000. Pitino assigned the rest of the excess fair value over book value to Brey's patented technology (six-year remaining life). Brey reported net income from its own operations of $88,000 in 2016 and $104,000 in 2017. Brey declared dividends of $31,000 in 2016 and $35,000 in 2017. Inventory Remaining at transfer price) 61,500 Transfer Price Year-End (at YearCost to Breyto Pitino 2016 2017 2018 $ 93,000 153,000 182,000 235,000 255,000 280,000 $ 49,000 60,000