Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2017, for $612,000 in cash and other consideration. At the acquisition date, Protrade assessed Seacrafts identifiable assets and liabilities at a collective net fair value of $765,000 and the fair value of the 20 percent noncontrolling interest was $153,000. 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, 2018:

Protrade Seacraft Sales $880,000 $600,000

Cost of goods sold 410,000 317,000

Operating expenses 174,000 129,000

Retained earnings, 1/1/18 980,000 420,000

Inventory 370,000 144,000

Buildings (net) 382,000 181,000

Investment income Not given 0

Each of the following problems is an independent situation:

1. Assume that Protrade sells Seacraft inventory at a markup equal to 60 percent of cost. Intra-entity transfers were $114,000 in 2017 and $134,000 in 2018. Of this inventory, Seacraft retained and then sold $52,000 of the 2017 transfers in 2018 and held $66,000 of the 2018 transfers until 2019. Determine balances for the following items that would appear on consolidated financial statements for 2018:

Cost of Goods Sold

Inventory

Net Income Attributable to Noncontrolling Interest

2. Assume that Seacraft sells inventory to Protrade at a markup equal to 60 percent of cost. Intra-entity transfers were $74,000 in 2017 and $104,000 in 2018. Of this inventory, $45,000 of the 2017 transfers were retained and then sold by Protrade in 2018, whereas $59,000 of the 2018 transfers were held until 2019. Determine balances for the following items that would appear on consolidated financial statements for 2018:

Cost of Goods Sold

Inventory

Net Income Attributable to Noncontrolling Interest

3.Protrade sells Seacraft a building on January 1, 2017, for $128,000, although its book value was only $74,000 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 2018:

Buildings (net)

Operating Expenses

Net Income Attributable to Noncontrolling Interest