Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2017, for $440,000 in cash and other consideration. At the acquisition date, Protrade assessed Seacraft's identifiable assets and liabilities at a collective net fair value of $615,000 and the fair value of the 20 percent noncontrolling interest was $110,000. 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	$	730,000		$	450,000
Cost of goods sold		335,000			242,000
Operating expenses		159,000			114,000
Retained earnings, 1/1/18		830,000			270,000
Inventory		355,000			119,000
Buildings (net)		367,000			166,000
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 $99,000 in 2017 and $119,000 in 2018. Of this inventory, Seacraft retained and then sold $37,000 of the 2017 transfers in 2018 and held $51,000 of the 2018 transfers until 2019. Determine balances for the following items that would appear on consolidated financial statements for 2018:

b. Assume that Seacraft sells inventory to Protrade at a markup equal to 60 percent of cost. Intra-entity transfers were $59,000 in 2017 and $89,000 in 2018. Of this inventory, $30,000 of the 2017 transfers were retained and then sold by Protrade in 2018, whereas $44,000 of the 2018 transfers were held until 2019. Determine balances for the following items that would appear on consolidated financial statements for 2018:

c. Protrade sells Seacraft a building on January 1, 2017, for $98,000, although its book value was only $59,000 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:

a.Cost of goods sold: ?

Inventory: ?

Net income attributable to noncontrolling interest: ?

b.Cost of goods sold: ?

Inventory: ?

Net income attributable to noncontrolling interest: ?

c.Buildings (net): ?

Operating expenses: ?

Net income attributable to noncontrolling interest: ?