LO 2,4 P6.1 Consolidation Working Paper, Noncontrolling Interest, Intercompany Inventory Transac- tions Peninsula Industries and Scaport Company, a 90 percent owned subsidiary, engage in extensive intercompany transactions involving raw materials, component parts, and completed products. Peninsula acquired its interest in Seaport several years ago, at a cost of S3,000,000. At that time, Seaport's boolk value was $2,000000 and the fair value of the noncontrolling interest in Seaport was S275,000. The excess of acquisition cost over book value was attributed to previously unrecorded indefinite-lived in tangibles, valued at S500,000, and to goodwill.As of January 1, 2016, the intangibles were impaired by $200,000 and the goodwill was impaired by $300,000. Impairment testing reveals no additional impair- ment of either asset in 2016. Intercompany sales for 2016 and the unconfirmed intercompany profits in the beginning and ending inventories of both companies are summarized below: Peninsula Industries Scaport Company in thousands) 100,000 $ 60.000 2,200,000 80,000 3,700.c00 75,000 Intaroompany sales to a Prior to consolidation at December 31, 2016, the separate condensed trial balances of the two companies are as follows