Protrade Corporation acquired 70 percent of the outstanding voting stock of Seacraft Company on January 1, 2020, for $437,500 In cash and other consideration. At the acquisition date, Protrade assessed Seacraft's Identifiable assets and liabilities at a collective net fair value of $625,000, and the fair value of the 30 percent noncontrolling Interest was $187,500. 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: Sales Cost of goods sold Operating expenses Retained earnings, 1/1/21 Inventory Buildings (net) Investment income Protrade $740,000 Seacraft $460,000 340,000 247,000 160,000 115,000 840,000 280,000 356,000 368,000 120,000 167,000 Not given 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 $100,000 in 2020 and $120,000 in 2021. Of this Inventory, Seacraft retained and then sold $38,000 of the 2020 transfers in 2021 and held $52,000 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 $60,000 In 2020 and $90,000 in 2021. Of this inventory, $31,000 of the 2020 transfers were retained and then sold by Protrade in 2021, whereas $45,000 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 $100,000, although its book value was only $60,000 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 Answer is complete but not entirely correct. a. Cost of goods sold $ 472,250 Inventory $ 456,500 b. Net income attributable to noncontrolling interest Cost of goods sold $ 15,750 x $ 502,250 Inventory $ 459,625 x C. Net income attributable to noncontrolling interest Buildings (net) $ 42,625 x $ 515,000 x Operating expenses $ 275,000 x Net income attributable to noncontrolling interest $ 42,625 X