Protrade Corporation acquired 70 percent of the outstanding voting stock of Seacraft Company on January 1, 2020, for $458,500 in cash and other consideration. At the acquisition date, Protrade assessed Seacraft's identifiable assets and liabilities at a collective net fair value of $655,000, and the fair value of the 30 percent noncontrolling interest was $196,500. 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:

	Protrade			Seacraft
Sales	$	770,000		$	490,000
Cost of goods sold		355,000			262,000
Operating expenses		163,000			118,000
Retained earnings, 1/1/21		870,000			310,000
Inventory		359,000			123,000
Buildings (net)		371,000			170,000
Investment income	Not given			0

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 $103,000 in 2020 and $123,000 in 2021. Of this inventory, Seacraft retained and then sold $41,000 of the 2020 transfers in 2021 and held $55,000 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 $63,000 in 2020 and $93,000 in 2021. Of this inventory, $34,000 of the 2020 transfers were retained and then sold by Protrade in 2021, whereas $48,000 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. Protrade sells Seacraft a building on January 1, 2020, for $106,000, although its book value was only $63,000 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 Net Income Attributable to Noncontrolling Interest

\begin{tabular}{l|l|} \hline a. & Cost of goods sold \\ \hline & Inventory \\ \hline & Net income attributable to noncontrolling interest \\ \hline b. & Cost of goods sold \\ \hline & Inventory \\ \hline & Net income attributable to noncontrolling interest \\ \hline c. & Buildings ineti \\ \hline & Operating expenses \\ \hline & Net income attributable to noncontrolling interest \\ \hline \end{tabular}