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Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2017, for $428,000 in cash and other consideration. At the acquisition date, Protrade assessed Seacraft's identifiable assets and liabilities at a collective net fair value of $585,000 and the fair value of the 20 percent noncontrolling interest was $107,000. 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, 2018:

	Protrade			Seacraft
Sales	$	700,000		$	420,000
Cost of goods sold		320,000			227,000
Operating expenses		156,000			111,000
Retained earnings, 1/1/18		800,000			240,000
Inventory		352,000			116,000
Buildings (net)		364,000			163,000
Investment income	Not given			0

Each of the following problems is an independent situation:

• Assume that Protrade sells Seacraft inventory at a markup equal to 60 percent of cost. Intra-entity transfers were $96,000 in 2017 and $116,000 in 2018. Of this inventory, Seacraft retained and then sold $34,000 of the 2017 transfers in 2018 and held $48,000 of the 2018 transfers until 2019. Determine balances for the following items that would appear on consolidated financial statements for 2018:
• Assume that Seacraft sells inventory to Protrade at a markup equal to 60 percent of cost. Intra-entity transfers were $56,000 in 2017 and $86,000 in 2018. Of this inventory, $27,000 of the 2017 transfers were retained and then sold by Protrade in 2018, whereas $41,000 of the 2018 transfers were held until 2019. Determine balances for the following items that would appear on consolidated financial statements for 2018:
• Protrade sells Seacraft a building on January 1, 2017, for $92,000, although its book value was only $56,000 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 2018:

	a. Cost of goods sold Inventory Net income attributable to noncontrolling interest b. Cost of goods sold Inventory Net income attributable to noncontrolling interest c. Buildings (net) Operating expenses Net income attributable to noncontrolling interest

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