Pot Company owns controlling interests in San and Tay Corporations, having acquired an 80 percent interest in San in 2011, and a 90 percent interest in Tay on January 1, 2012. Pot's investments in San and Tay were at book value equal to fair value. Inventories of the affiliated companies at December 31, 2012, and December 31, 2013, were as follows:

Pot sells to San at a 25 percent markup based on cost, and Tay sells to Pot at a 20 percent markup based on cost. Pot's beginning and ending inventories for 2013 consisted of 40 percent and 50 percent, respectively, of goods acquired from Tay. All of San's inventories consisted of merchandise acquired from Pot.REQUIRED1. Calculate the inventory that should appear in the December 31, 2012, consolidated balance sheet.2. Calculate the inventory that should appear in the December 31, 2013, consolidated balancesheet.

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December 31. 2012 $120,000 77,500 48,000 December 31, 2013 S108,000 62,500 72,000 Pot inventories San inventories Tay inventories