Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2017, for $476,000 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 $119,000. 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 $820,000$540,000

Cost of goods sold 380,000287,000

Operating expenses 168,000123,000

Retained earnings, 1/1/18920,000360,000

Inventory 364,000128,000

Buildings (net)376,000175,000

Investment incomeNot given0

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 $108,000 in 2017 and $128,000 in 2018. Of this inventory, Seacraft retained and then sold $46,000 of the 2017 transfers in 2018 and held $60,000 of the 2018 transfers until 2019.
• Determine balances for the following items that would appear on consolidated financial statements for 2018:
• Assume that Seacraft sells inventory to Protrade at a markup equal to 60 percent of cost. Intra-entity transfers were $68,000 in 2017 and $98,000 in 2018. Of this inventory, $39,000 of the 2017 transfers were retained and then sold by Protrade in 2018, whereas $53,000 of the 2018 transfers were held until 2019.
• Determine balances for the following items that would appear on consolidated financial statements for 2018:
• Protrade sells Seacraft a building on January 1, 2017, for $116,000, although its book value was only $68,000 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:

find

a)

cogs:

inventory

net income attributible to noncontrolling interest

B)

cogs:

inventory

net income attributible to noncontrolling interest

c)

buildings (net)

operating expenses

net income attributible to noncontrolling interest