Problem 3-12 (LO 3, 5) 70%, cost method worksheet, several adjustments, third year. Refer to the preceding information for Pcraft’s acquisition of Sailair’s common stock. Assume that Pcraft paid $400,000 for 70% of Sailair common stock. Pcraft uses the cost method to account for its investment in Sailair. Pcraft and Sailair had the following trial balances on December 31, 20X3:

Pcraft Sailair Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177,000 60,000 Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000 55,000