Brotrade Corporation acquired $70$ percent of the outstanding voting stock of Seacraft Company on

January $1,2020,$ for $$500,500$ in cash and other consideration. At the acquisition date, Protrade.

assessed Seacraft's identifiable assets and liabilities at a collective net fair value of $$715,000,$ and

the fair value of the $30$ percent noncontrolling interest was $$214,500.$ No excess fair value over

book value amortization accompanied the acquisition.

The following selected account balances are from the individual financial records of these two

companies as of December $31,2021$:

Each of the following problems is an independent situation:

a$.$ Assume that Protrade sells Seacraft inventory at a markup equal to $60$ percent of cost$.$ Intra$-$

entity transfers were $$109,000$ in $2020$ and $$129,000$ in $2021.$ Of this inventory, Seacraft

retained and then sold $$47,000$ of the $2020$ transfers in $2021$ and held $$61,000$ of the $2021$

transfers until $2022.$

Determine balances for the following items that would appear on consolidated financial

statements for $2021$:

Cost of Goods Sold

Inventory

Net Income Attributable to Noncontrolling Interest

b$.$ Assume that Seacraft sells inventory to Protrade at a markup equal to $60$ percent of cost$.$

Intra$-$entity transfers were $$69,000$ in $2020$ and $$99,000$ in $2021.$ Of this inventory, $$40,000$

of the $2020$ transfers were retained and then sold by Protrade in $2021,$ whereas $$54,000$ of

the $2021$ transfers were held until $2022.$

Determine balances for the following items that would appear on consolidated financial

statements for $2021$:

Cost of Goods Sold

Inventory

Net Income Attributable to Noncontrolling Interest

c$.$ Brotrades sells Seacraft a building on January $1,2020,$ for $$118,000,$ although its book value

was only $$69,000$ on this date. The building had a five$-$year remaining life and was to be

depreciated using the straight$-$line method with no salvage value.

Determine balances for the following items that would appear on consolidated financial

statements for $2021$:

Buildings $($net$)$

Operating Expenses