Lever Corporation acquired 70 percent of the ownership of Tropic Company on January 1, 20X1. The fair value of the noncontrolling interest at acquisition was equal to its proportionate share of the fair value of the net assets of Tropic. The full amount of the differential at acquisition was attributable to buildings and equipment, which had a remaining useful life of eight years. Financial statement data for the two companies and the consolidated entity at December 31, 20X6, are as follows:

LEVER CORPORATION AND TROPIC COMPANY Balance Sheet Data December 31, 20X6
Item	Lever Corporation				Tropic Company				Consolidated Entity
Assets
Cash	$	71,000			$	55,000			$	126,000
Accounts Receivable		?				62,000				149,000
Inventory		129,000				104,000				225,000
Buildings & Equipment		410,000				230,000				700,000
Less: Accumulated Depreciation		(184,000	)			(114,000	)			( ?	)
Investment in Tropic Company		?
Total Assets	$	?			$	337,000			$	?
Liabilities & Equity
Accounts Payable	$	90,000			$	24,000			$	93,000
Other Payables		?				5,000				?
Notes Payable		254,000				124,000				378,000
Common Stock		124,000				64,000				124,000
Retained Earnings		176,500				120,000				176,500
Noncontrolling Interest										48,500
Total Liabilities & Equity	$	?			$	337,000			$	?

LEVER CORPORATION AND TROPIC COMPANY Income Statement Data For the Year Ended December 31, 20X6
Item	Lever Corporation					Tropic Company					Consolidated Entity
Sales		$	420,000				$	264,000				$	649,000
Income from Subsidiary			30,100
Total Income		$	450,100				$	264,000				$	649,000
Cost of Goods Sold		$	310,000				$	174,000				$	435,000
Depreciation Expense			24,000					29,000					54,000
Interest Expense			29,000					9,900					45,400
Other Expenses			26,000					15,900					48,400
Total Expenses		$	(389,000	)			$	(228,800	)			$	(582,800	)
Consolidated Net Income													66,200
Income to Noncontrolling Interest													(5,100	)
Controlling Interest in Net Income		$	61,100				$	35,200				$	61,100

All unrealized profit on intercompany inventory sales on January 1, 20X6, were consolidated on Levers books. All unrealized inventory profits at December 31, 20X6, were consolidated on Tropics books. Assume Lever uses the fully adjusted equity method and that Lever does not make the optional depreciation consolidation worksheet entry.

Required:

a.	For the buildings and equipment held by Tropic when Lever acquired it and still on hand on December 31, 20X6, by what amount had buildings and equipment increased in value from their acquisition to the date of combination with Lever?

b.	What amount should be reported as accumulated depreciation for the consolidated entity at December 31, 20X6 (assuming Lever does not make the optional accumulated depreciation consolidation entry)?

c.	If Tropic reported capital stock outstanding of $64,000 and retained earnings of $34,000 on January 1, 20X1, what amount did Lever pay to acquire its ownership of Tropic?

d.	What balance does Lever report as its investment in Tropic at December 31, 20X6?

e.	What amount of intercorporate sales of inventory occurred in 20X6?

f.	What amount of unrealized inventory profit exists at December 31, 20X6?

g.	Prepare the consolidation entry used in eliminating intercompany inventory sales during 20X6. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

h.	What was the amount of unrealized inventory profit at January 1, 20X6?

i.	What balance in accounts receivable did Lever report at December 31, 20X6?