Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2014, for $428,000 in cash and other consideration. At the acquisition date, Protrade assessed Seacrafts identifiable assets and liabilities at a collective net fair value of $585,000 and the fair value of the 20 percent noncontrolling interest was $107,000. 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	$	700,000		$	420,000
Cost of goods sold		320,000			227,000
Operating expenses		156,000			111,000
Retained earnings, 1/1/15		800,000			240,000
Inventory		352,000			116,000
Buildings (net)		364,000			163,000
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 $96,000 in 2014 and $116,000 in 2015. Of this inventory, Seacraft retained and then sold $34,000 of the 2014 transfers in 2015 and held $48,000 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:

Inventory:

Net income attrtibutable to noncontrolling interest:

b.

Assume that Seacraft sells inventory to Protrade at a markup equal to 60 percent of cost. Intra-entity transfers were $56,000 in 2014 and $86,000 in 2015. Of this inventory, $27,000 of the 2014 transfers were retained and then sold by Protrade in 2015, whereas $41,000 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 $92,000, although its book value was only $56,000 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: