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Pitino acqulred 90 percent of Brey's outstanding shares on January 1, 2016, In exchange for $405,000 In cash. The subsidlary's stockholders' equity accounts totaled $389,000
Pitino acqulred 90 percent of Brey's outstanding shares on January 1, 2016, In exchange for $405,000 In cash. The subsidlary's stockholders' equity accounts totaled $389,000 and the noncontrolling Interest had a falr value of $45,000 on that day. However, a building (with a nine-year remalning life) In Brey's accounting records was undervalued by $27,000. Pltino assigned the rest of the excess falr value over book value to Brey's patented technology (four-year remalning Iife). Brey reported net Income from its own operations of $71,000 In 2016 and $87,000 In 2017. Brey declared dividends of $22,500 In 2016 and $26,500 In 2017 Inventory Remaining at Year-End (at transfer price) Transfer Price to Pitino Year 2816 2817 2818 Cost to Brey $ 76,8ee $ 158,800 $ 32,888 182,8e8 126,758 17e,888 195,8e8 44,588 7e,888 At December 31, 2018, Pltino owes Brey $23,000 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
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