pitino acquired 80 percent of brey's outstanding shares on january 1, 2019, in exchange for $320,000 in cash. the subsidiary's stockholders' equity accounts totaled $304,000, and the noncontrolling interest had a fair value of $80,000 on that day. however, a building (with a eight-year remaining life) in brey's accounting records was undervalued by $37,000. pitino assigned the rest of the excess fair value over book value to brey's patented technology (five-year remaining life). brey reported net income from its own operations of $76,000 in 2019 and $92,000 in 2020. brey declared dividends of $25,000 in 2019 and $29,000 in 2020. brey sells inventory to pitino as follows: year cost to brey transfer price to pitino inventory remaining at year-end (at transfer price) 2019 $ 81,000 $ 175,000 $ 37,000 2020 107,250 195,000 49,500 2021 132,000 220,000 55,000 at december 31, 2021, pitino owes brey $28,000 for inventory acquired during the period. the following separate account balances are for these two companies for December 31, 2019, and the year then ended Note: Parentheses indicate a credit balance