Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2017, for $484,000 in cash and other consideration. At the acquisition date, Protrade assessed Seacraft's identifiable assets and liabilities at a collective net fair value of $725,000 and the fair value of the 20 percent noncontrolling interest was $121,000. 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 Sales Cost of goods sold Operating expenses Retained earnings, 1/1/18 Inventory Buildings (net) Investment income Protrade Seacraft 840,000 560,000 390,000 297,000 170,000 125,000 940,000 380,000 366,000 130,000 378,000 177,000 Not given 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 $110,000 in 2017 and $130,000 in 2018. Of this inventory, Seacraft retained and then sold $48,000 of the 2017 transfers in 2018 and held $62,000 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 $70,000 in 2017 and $100,000 in 2018. Of this inventory, $41,000 of the 2017 transfers were retained and then sold by Protrade in 2018, whereas $55,000 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 $120,000, although its book value was only $70,000 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