Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2014, for $448,000 in cash and other consideration. At the acquisition date, Protrade assessed Seacrafts identifiable assets and liabilities at a collective net fair value of $635,000 and the fair value of the 20 percent noncontrolling interest was $112,000. 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	750,000	470,000
Cost of goods sold	345,000	252,000
Operating expenses	161,000	116,000
Retained earnings 1/1/15	850,000	290,000
Inventory	357,000	121,000
Buildings (net)	369,000	168,000
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 $101,000 in 2014 and $121,000 in 2015. Of this inventory, Seacraft retained and then sold $39,000 of the 2014 transfers in 2015 and held $53,000 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 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 $61,000 in 2014 and $91,000 in 2015. Of this inventory, $32,000 of the 2014 transfers were retained and then sold by Protrade in 2015, whereas $46,000 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 $102,000, although its book value was only $61,000 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:

Cost of goods sold
Inventory
Net income attributable to noncontrolling interest