$2$

Determine balances for the following items that would appear on consolidated financial statements for $2024$:

$12$

Buildings $($net$)$

points

Operating Expenses

Net Income Attributable to Noncontrolling Interest

$\begin{array}{cc}\text{e}\text{B}\text{o}\text{o}\text{k}& \text{A}\text{s}\text{k}\\ \text{P}\text{r}\text{i}\text{n}\text{t}& \text{R}\text{e}\text{f}\text{e}\text{r}\text{e}\text{n}\text{c}\text{e}\text{s}\end{array}$

$\begin{array}{cc}a.\text{C}\text{o}\text{s}\text{t}of\text{g}\text{o}\text{o}\text{d}\text{s}\text{s}\text{o}\text{l}\text{d}& ?\\ a.\text{I}\text{n}\text{v}\text{e}\text{n}\text{t}\text{o}\text{r}\text{y}& ?\\ a.\text{N}\text{e}\text{t}\text{i}\text{n}\text{c}\text{o}\text{m}\text{e}\text{a}\text{t}\text{t}\text{r}\text{i}\text{b}\text{u}\text{t}\text{a}\text{b}\text{l}\text{e}to\text{n}\text{o}\text{n}\text{c}\text{o}\text{n}\text{t}\text{r}\text{o}\text{l}\text{l}\text{i}\text{n}\text{g}\text{i}\text{n}\text{t}\text{e}\text{r}\text{e}\text{s}\text{t}& ?\\ b.\text{C}\text{o}\text{s}\text{t}of\text{g}\text{o}\text{o}\text{d}\text{s}\text{s}\text{o}\text{l}\text{d}& ?\\ b.\text{I}\text{n}\text{v}\text{e}\text{n}\text{t}\text{o}\text{r}\text{y}& ?\\ b.\text{N}\text{e}\text{t}\text{i}\text{n}\text{c}\text{o}\text{m}\text{e}\text{a}\text{t}\text{t}\text{r}\text{i}\text{b}\text{u}\text{t}\text{a}\text{b}\text{l}\text{e}to\text{n}\text{o}\text{n}\text{c}\text{o}\text{n}\text{t}\text{r}\text{o}\text{l}\text{l}\text{i}\text{n}\text{g}\text{i}\text{n}\text{t}\text{e}\text{r}\text{e}\text{s}\text{t}& ?\\ c.\text{B}\text{u}\text{i}\text{l}\text{d}\text{i}\text{n}\text{g}\text{s}(net)& ?\\ c.\text{O}\text{p}\text{e}\text{r}\text{a}\text{t}\text{i}\text{n}\text{g}\text{e}\text{x}\text{p}\text{e}\text{n}\text{s}\text{e}\text{s}& ?\\ c.\text{N}\text{e}\text{t}\text{i}\text{n}\text{c}\text{o}\text{m}\text{e}\text{a}\text{t}\text{t}\text{r}\text{i}\text{b}\text{u}\text{t}\text{a}\text{b}\text{l}\text{e}to\text{n}\text{o}\text{n}\text{c}\text{o}\text{n}\text{t}\text{r}\text{o}\text{l}\text{l}\text{i}\text{n}\text{g}\text{i}\text{n}\text{t}\text{e}\text{r}\text{e}\text{s}\text{t}& ?\end{array}$ Required:

a$.$ Assume that Protrade sells Seacraft inventory at a markup equal to $40$ percent of cost$.$ Intra$-$entity transfers were $$104,000$ in $2023$

and $$124,000$ in $2024.$ Of this inventory, Seacraft retained and then sold $$42,000$ of the $2023$ transfers in $2024$ and held $$56,000$

of the $2024$ transfers until $2025.$

Determine balances for the following items that would appear on consolidated financial statements for $2024$:

Cost of Goods Sold

Inventory

Net Income Attributable to Noncontrolling Interest

b$.$ Assume that Seacraft sells inventory to Protrade at a markup equal to $40$ percent of cost$.$ Intra$-$entity transfers were $$64,000$ in

$2023$ and $$94,000$ in $2024.$ Of this inventory, $$35,000$ of the $2023$ transfers were retained and then sold by Protrade in $2024,$

whereas $$49,000$ of the $2024$ transfers were held until $2025.$

Determine balances for the following items that would appear on consolidated financial statements for $2024$:

Cost of Goods Sold

Inventory

Net Income Attributable to Noncontrolling Interest

c$.$ Protrade sells Seacraft a building on January $1,2023,$ for $$108,000,$ although its book value was only $$64,000$ 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. Protrade Corporation acquired $80$ percent of the outstanding voting stock of Seacraft Company on January $1,2023,$ for $$532,000$ in

cash and other consideration. At the acquisition date, Protrade assessed Seacraft's identifiable assets and liabilities at a collective net

fair value of $$665,000,$ and the fair value of the $20$ percent noncontrolling interest was Protrade Corporation acquired $80$ percent of the outstanding voting stock of Seacraft Company on January $1,2023,$ for $$532,000$ in cash and other consideration. At the acquisition date, Protrade assessed Seacraft's identifiable assets and liabilities at a collective net fair value of $$665,000,$ and the fair value of the $20$ percent noncontrolling interest was $$133,000.$ 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 $31,2024$:

Items Protrade Seacraft

Sales $ $780,000$ $ $500,000$

Cost of goods sold $360,000267,000$

Operating expenses $164,000119,000$

Retained earnings, $1/1/24880,000320,000$

Inventory $360,000124,000$

Buildings $($net$)372,000171,000$

Investment income Not given $0$

Each of the following problems is an independent situation:

Required:

Assume that Protrade sells Seacraft inventory at a markup equal to $40$ percent of cost$.$ Intra$-$entity transfers were $$104,000$ in $2023$ and $$124,000$ in $2024.$ Of this inventory, Seacraft retained and then sold $$42,000$ of the $2023$ transfers in $2024$ and held $$56,000$ of the $2024$ transfers until $2025.$

Determine balances for the following items that would appear on consolidated financial statements for $2024$:

Cost of Goods Sold

Inventory

Net Income Attributable to Noncontrolling Interest

Assume that Seacraft sells inventory to Protrade at a markup equal to $40$ percent of cost$.$ Intra$-$entity transfers were $$64,000$ in $2023$ and $$94,000$ in $2024.$ Of this inventory, $$35,000$ of the $2023$ transfers were retained and then sold by Protrade in $2024,$ whereas $$49,000$ of the $2024$ transfers were held until $2025.$

Determine balances for the following items that would appear on consolidated financial statements for $2024$:

Cost of Goods Sold

Inventory

Net Income Attributable to Noncontrolling Interest

Protrade sells Seacraft a building on January $1,2023,$ for $$108,000,$ although its book value was only $$64,000$ 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 $2024$:

Buildings $($net$)$

Operating Expenses

Net Income Attributable to Noncontrolling Interest

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