Problem $4-32($Static$)($LO $4-1,4-5,4-7)$

On January $1,2023,$ Perlman Corporation exchanged $$1,710,000$ cash for $90$ percent of the outstanding voting stock of Stein Company. The consideration transferred by Perlman provided a reasonable basis for assessing the total January $1,2023,$ fair value of Stein Company. At the acquisition date, Stein reported the following owners$$ equity amounts in its balance sheet:

Common stock $ $400,000$

Additional paid$-$in capital $60,000$

Retained earnings $265,000$

In determining its acquisition offer, Perlman noted that the values for Stein$$s recorded assets and liabilities approximated their fair values. Perlman also observed that Stein had developed internally a software with an assessed fair value of $$800,000$ that was not reflected on Stein$$s books. Perlman expected both cost and revenue synergies from the combination.

At the acquisition date, Perlman prepared the following fair$-$value allocation schedule:

Fair value of Stein Company $ $1,900,000$

Book value of Stein Company $725,000$

Excess fair value $1,175,000$

to software $(10-$year remaining life$)800,000$

to goodwill $ $375,000$

At December $31,2024,$ the two companies report the following balances:

Accounts Perlman Stein

Revenues $ $(1,843,000)$ $ $(675,000)$

Cost of goods sold $1,100,000322,000$

Depreciation expense $125,000120,000$

Amortization expense $275,00011,000$

Interest expense $27,5007,000$

Equity in income of Stein $(121,500)0$

Net income $ $(437,000)$ $ $(215,000)$

Retained earnings, $1/1$ $ $(2,625,000)$ $ $(395,000)$

Net income $(437,000)(215,000)$

Dividends declared $350,00025,000$

Retained earnings, $12/31$ $ $(2,712,000)$ $ $(585,000)$

Current assets $ $1,204,000$ $ $430,000$

Investment in Stein $1,854,0000$

Buildings and equipment $931,000863,000$

Copyrights $950,000107,000$

Total assets $ $4,939,000$ $ $1,400,000$

Accounts payable $ $(485,000)$ $ $(200,000)$

Notes payable $(542,000)(155,000)$

Common stock $(900,000)(400,000)$

Additional paid$-$in capital $(300,000)(60,000)$

Retained earnings, $12/31(2,712,000)(585,000)$

Total liabilities and equities $ $(4,939,000)$ $ $(1,400,000)$

At year$-$end, there were no intra$-$entity receivables or payables.

Required:

Determine the consolidated balances for this business combination as of December $31,2024.$

If instead the noncontrolling interest$$s acquisition$-$date fair value is assessed at $$167,500,$ what changes would be evident in the consolidated statements?