Problem 1: Several years ago, Polar Inc. acquired an 80% interest in Icecap Co. The book values of Icecap's asset and liability accounts at that time were considered to be equal to their fair values. Polar's acquisition value corresponded to the underlying book value of Icecap so that no allocations or goodwill resulted from the transfer. The following selected account balances were from the individual financial records of these two companies as of December 31, 2021: Assume that Polar sold inventory to Icecap at a gross profit 20% of transfer price. Intra-entity transfers were $130,000 in 2020 and $165,000 in 2021 . Of this inventory, $39,000 of the 2020 transfers were retained and then sold by Icecap in 2021 , while $55,000 of the 2021 transfers were held until 2022. Required: a. Please specify the type of the intra-entity transfers in 2020 and 2021 (downstream or upstream sales) (1 point): b. Calculate the unrealized gross profits (UGPs) from the transfers in following years (4 points): (i) UGP from the transfer in 2020 (ii) UGP from the transfer in 2021 c. For the consolidated financial statements for 2021, determine the balances that would appear for the following accounts ( 20 points): (i) Sales (ii) Cost of Goods Sold (iii) Inventory (iv) Net income attributable to the noncontrolling interest