Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2017, for $452,000 in cash and other consideration. At the acquisition date, Protrade assessed Seacraft's identifiable assets and liabilities at a collective net fair value of $645,000 and the fair value of the 20 percent noncontrolling interest was $113,000. 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	$	760,000		$	480,000
Cost of goods sold		350,000			257,000
Operating expenses		162,000			117,000
Retained earnings, 1/1/18		860,000			300,000
Inventory		358,000			122,000
Buildings (net)		370,000			169,000
Investment income	Not given			0

Each of the following problems is an independent situation:

• Assume that Protrade sells Seacraft inventory at a markup equal to 60 percent of cost. Intra-entity transfers were $102,000 in 2017 and $122,000 in 2018. Of this inventory, Seacraft retained and then sold $40,000 of the 2017 transfers in 2018 and held $54,000 of the 2018 transfers until 2019. Determine balances for the following items that would appear on consolidated financial statements for 2018:
• Assume that Seacraft sells inventory to Protrade at a markup equal to 60 percent of cost. Intra-entity transfers were $62,000 in 2017 and $92,000 in 2018. Of this inventory, $33,000 of the 2017 transfers were retained and then sold by Protrade in 2018, whereas $47,000 of the 2018 transfers were held until 2019. Determine balances for the following items that would appear on consolidated financial statements for 2018:
• Protrade sells Seacraft a building on January 1, 2017, for $104,000, although its book value was only $62,000 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: