Question One: (X) Corporation acquired 80 percent of the outstanding voting stock of (Z) Company on January 1, 2020, for $612,000 in cash and other consideration. At the acquisition date, (X) assessed (Z)'s identifiable assets and liabilities at a collective net fair value of $765,000, and the fair value of the 20 percent noncontrolling interest was $153,000. 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, 2021: (X) (Z) Sales $ 880,000 $ 600,000 Cost of goods sold 410,000 317,000 Operating expenses 174,000 129,000 Retained earnings, 1/1/21 980,000 420,000 Inventory 370,000 144,000 Buildings (net) 382,000 181,000 Investment income Not given 0 Each of the following problems is an independent situation: a. Assume that (X) sells (Z) inventory at a markup equal to 60 percent of cost. Intra-entity transfers were $114,000 in 2020 and $134,000 in 2021. Of this inventory, (Z) retained and then sold $52,000 of the 2020 transfers in 2021 and held $66,000 of the 2021 transfers until 2022. Determine balances for the following items that would appear on consolidated financial statements for 2021: Cost of Goods Sold Inventory Net Income Attributable to Noncontrolling Interest b. Assume that (Z) sells inventory to (X) at a markup equal to 60 percent of cost. Intra-entity transfers were $74,000 in 2020 and $104,000 in 2021. Of this inventory, $45,000 of the 2020 transfers were retained and then sold by (X) in 2021, whereas $59,000 of the 2021 transfers were held until 2022. Determine balances for the following items that would appear on consolidated financial statements for 2021: Cost of Goods Sold Inventory Net Income Attributable to Noncontrolling Interest c. (X) sells (Z) a building on January 1, 2020, for $128,000, although its book value was only $74,000 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 2021: Buildings (net)