Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2014, for $612,000 in cash and other consideration. At the acquisition date, Protrade assessed Seacraft’s identifiable assets and liabilities at a collective net fair value of $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, 2015:

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 $114,000 in 2014 and $134,000 in 2015. Of this inventory, Sea-craft retained and then sold $52,000 of the 2014 transfers in 2015 and held $66,000 of the 2015 transfers until 2016.
Determine balances for the following items that would appear on consolidated financial statements for 2015:
Cost of Goods Sold
Inventory
Net Income Attributable to Noncontrolling Interest
b. Assume that Seacraft sells inventory to Protrade at a markup equal to 60 percent of cost. Intra-entity transfers were $74,000 in 2014 and $104,000 in 2015. Of this inventory, $45,000 of the 2014 transfers were retained and then sold by Protrade in 2015, whereas $59,000 of the 2015 transfers were held until 2016.
Determine balances for the following items that would appear on consolidated financial statements for 2015:
Cost of Goods Sold
Inventory
Net Income Attributable to Noncontrolling Interest
c. Protrade sells Seacraft a building on January 1, 2014, for $128,000, although its book value was only $74,000 on this date. The building had a 5-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 2015:
Buildings (net)
Operating Expenses
Net Income Attributable to NoncontrollingInterest

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Protrade Seacraft Sales Cost of goods sold Operating expenses Retained earnings, 1/1/15 Inventory Buildings (net) Investment income $880,000 410,000 174,000 980,000 370,000 382,000 Not given $600,000 317,000 129,000 420,000 144,000 181,000