Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2014, for $436,000 in cash and other consideration. At the acquisition date, Protrade assessed Seacrafts identifiable assets and liabilities at a collective net fair value of $605,000 and the fair value of the 20 percent noncontrolling interest was $109,000. 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, 2015:

	Protrade			Seacraft
Sales	$	720,000		$	440,000
Cost of goods sold		330,000			237,000
Operating expenses		158,000			113,000
Retained earnings, 1/1/15		820,000			260,000
Inventory		354,000			118,000
Buildings (net)		366,000			165,000
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 $98,000 in 2014 and $118,000 in 2015. Of this inventory, Seacraft retained and then sold $36,000 of the 2014 transfers in 2015 and held $50,000 of the 2015 transfers until 2016. Determine balances for the following items that would appear on consolidated financial statements for 2015:

Cost of goods sold	$440,000
Inventory	$237,000
Net income attributable to noncontrolling interest	$40,600

b.

Assume that Seacraft sells inventory to Protrade at a markup equal to 60 percent of cost. Intra-entity transfers were $58,000 in 2014 and $88,000 in 2015. Of this inventory, $29,000 of the 2014 transfers were retained and then sold by Protrade in 2015, whereas $43,000 of the 2015 transfers were held until 2016. Determine balances for the following items that would appear on consolidated financial statements for 2015:

Cost of goods sold
Inventory
Net income attributable to noncontrolling interest

c.	Protrade sells Seacraft a building on January 1, 2014, for $96,000, although its book value was only $58,000 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 2015:

Buildings (net)
Operating expenses
Net income attributable to noncontrolling interest