Protrade Corporation acquired 70 percent of the outstanding voting stock of Seacraft Company on January 1, 2020, for $500,500 in cash and other consideration. At the acquisition date, Protrade assessed Seacraft's identifiable assets and liabilities at a collective net fair value of $715,000, and the fair value of the 30 percent noncontrolling interest was $214,500. 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	$	830,000		$	550,000
Cost of goods sold		385,000			292,000
Operating expenses		169,000			124,000
Retained earnings, 1/1/21		930,000			370,000
Inventory		365,000			129,000
Buildings (net)		377,000			176,000
Investment income	Not given			0

Each of the following problems is an independent situation:

• Assume that Protrade sells Seacraft inventory at a markup equal to 60 percent of cost. Intra-entity transfers were $109,000 in 2020 and $129,000 in 2021. Of this inventory, Seacraft retained and then sold $47,000 of the 2020 transfers in 2021 and held $61,000 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
• Assume that Seacraft sells inventory to Protrade at a markup equal to 60 percent of cost. Intra-entity transfers were $69,000 in 2020 and $99,000 in 2021. Of this inventory, $40,000 of the 2020 transfers were retained and then sold by Protrade in 2021, whereas $54,000 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
• Protrade sells Seacraft a building on January 1, 2020, for $118,000, although its book value was only $69,000 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
• a.Cost of goods sold$676,625- incorrect
• Inventory$471,125- correct
• Net income attributable to noncontrolling interest$123,113- incorrect
• b.Cost of goods sold$682,250- incorrect
• Inventory$473,750- correct
• Net income attributable to noncontrolling interest$121,425- incorrect
• c.Buildings (net)$504,000- incorrect
• Operating expenses$283,000- incorrect
• Net income attributable to noncontrolling interest$125,940- incorrect