Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2017, for $416,000 in cash and other consideration. At the acquisition date, Protrade assessed Seacraft's identifiable assets and liabilities at a collective net fair value of $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, 2018:

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 2017 and $113,000 in 2018. Of this inventory, Seacraft retained and then sold $31,000 of the 2017 transfers in 2018 and held $45,000 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 $53,000 in 2017 and $83,000 in 2018. Of this inventory, $24,000 of the 2017 transfers were retained and then sold by Protrade in 2018, whereas $38,000 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 $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 2018:

Protrade Seacraft $679,000 $390,900 305,000 212,00e 153,000 108,00e Retained earnings, 1/1/18 77e,e00 21e,000 349,000 113,00e 361,000 160,800 63 Sales Cost of goods sold Operating expenses Inventory Buildings (net) Investment income Not given