Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2014, for $416,000 in cash and other consideration. At the acquisition date, Protrade assessed Seacrafts identifiable assets and liabilities at a collective net fair value of $555,000 and the fair value of the 20 percent noncontrolling interest was $104,000. 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	$	670,000		$	390,000
Cost of goods sold		305,000			212,000
Operating expenses		153,000			108,000
Retained earnings, 1/1/15		770,000			210,000
Inventory		349,000			113,000
Buildings (net)		361,000			160,000
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 $93,000 in 2014 and $113,000 in 2015. Of this inventory, Seacraft retained and then sold $31,000 of the 2014 transfers in 2015 and held $45,000 of the 2015 transfers until 2016. Determine balances for the following items that would appear on consolidated financial statements for 2015: costs of goods sold inventory net income attributable to noncontrolling interest

b.

Assume that Seacraft sells inventory to Protrade at a markup equal to 60 percent of cost. Intra-entity transfers were $53,000 in 2014 and $83,000 in 2015. Of this inventory, $24,000 of the 2014 transfers were retained and then sold by Protrade in 2015, whereas $38,000 of the 2015 transfers were held until 2016. Determine balances for the following items that would appear on consolidated financial statements for 2015:

costs of goods sold inventory net income attributable to noncontrolling interest

c.	Protrade sells Seacraft a building on January 1, 2014, for $86,000, although its book value was only $53,000 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 costs of goods sold inventory net income attributable to noncontrolling interest