Several years ago Polar Inc. acquired an 80% interest in Icecap Corp. The book values of Icecap's asset and liability accounts at that time were considered to be equal to their fair values. Polar's acquisition value corresponded to the underlying book value of Icecap so that no allocations or goodwill resulted from the transaction. The following selected account balances are from the individual financial records of these two companies as of December 31, 2012:

	Polar Inc.	IceCap Corp.
Sales	896,000	504,000
COGS	406,000	276,000
Operating Expenses	210,000	147,000
Retained Earnings 1/1/2012	1,036,000	252,000
Inventory	484,000	154,000
Land	250,000	100,000
Buildings, Net	501,000	220,000
Investment Income	Not Given

The following transactions have occurred between Polar and Icecap. Polar accounts for its investment in Icecap using the initial value method:

(a) Icecap sells inventory to Polar at a markup equal to 25% of cost. Intra-entity transfers were $130,000 in 2011 and $165,000 in 2012. Of this inventory, $39,000 of the 2011 transfers were retained and then sold by Polar in 2012, while $55,000 of the 2012 transfers were retained and then sold by Polar in 2013.

(b) Polar sold a building to Icecap on January 1, 2010 for $112,000, although the book value of this asset was only $70,000 on that date. The building had a five-year remaining useful life and was to be depreciated using the straight-line method with no salvage value.

(c) Icecap sold land to Polar on January 1, 2009 for $100,000, although the book value of this asset was only $65,000 on that date. Polar employs this land in its overall operations.

Required:

(1) In good form, prepare the consolidation elimination entries needed in connection with transactions (a) (c) at December 31, 2012. Label those entries: Requirement (1a), (1b), and (1c), as corresponds to the original transactions.

(2) In good form, prepare a schedule showing the noncontrolling interest in the consolidated 2012 net income.

(3) In good form, prepare the consolidation elimination entries needed in connection with transactions (a) (c) at December 31, 2013. Label those entries: Requirement (3a), (3b), and (3c), as corresponds to the original transactions.