Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2016, in exchange for $459,000 in cash. The subsidiary's stockholders' equity accounts totaled $443,000 and the noncontrolling interest had a fair value of $51,000 on that day. However, a building (with a ten-year remaining life) in Brey's accounting records was undervalued by $39,000. 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 $77,000 in 2016 and $93,000 in 2017. Brey declared dividends of $25,500 in 2016 and $29,500 in 2017 Inventory Remaining at transfer price) 50,500 Transfer Price Year-End (at to Pitino Year 2016 2017 2018 Cost to Brey $ 82,000 100,000 123,750 $ 180,000 $ 38,000 200,000 225,000 60,000 At December 31, 2018, Pitino owes Brey $29,000 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