Protrade Corporation acquired 80% of the outstanding voting stock of Seacraft Company on January 1, 2020, for $564,000 in cash and other consideration. At the acquisition date, Protrade assessed Seacraft's identifiable assets and liabilities at a collective net fair value of $705,000, and the fair value of the 20% percent noncontrolling interest was $141,000. 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 820,000 540,000

Cost of goods sold 380,000 287,000

Operating expenses 168,000 123,000

Retained Earnings 1/1/21 920,000 360,000

Inventory 364,000 128,000

Buildings (net) 376,000 175,000

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 $108,000 in 2020 and $128,000 in 2021. Of this inventory, Seacraft retained and then sold $46,000 of the 2020 transfers in 2021 and held $60,000 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 and Net income attributable to noncontrolling interest

b. Assume that Seacraft sells inventory to Protrade at a markup equal to 60% of cost. Intra-entity transfers were $68,000 in 2020 and $98,000 in 2021. Of this inventory, $39,000 of the 2020 transfers were retained and then sold by Protrade in 2021, whereas $53,000 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 $116,000, although its book value was only $68,000 on yhis 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, and Net Income attributable to noncontrolling interest