Protrade Corporation acquired 70 percent of the outstanding voting stock of Seacraft Company on January 1, 2017, for $409,500 in cash and other consideration

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Protrade Corporation acquired 70 percent of the outstanding voting stock of Seacraft Company on January 1, 2017, for $409,500 in cash and other consideration. At the acquisition date, Protrade assessed Seacraft's identifiable assets and liabilities at a collective net fair value of $685,000 and the fair value of the 30 percent noncontrolling interest was $175,500. 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:

Cost of goods sold		370,000			277,000
Operating expenses		166,000			121,000
Retained earnings, 1/1/18		900,000			340,000
Inventory		362,000			126,000
Buildings (net)		374,000			173,000
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 $106,000 in 2017 and $126,000 in 2018. Of this inventory, Seacraft retained and then sold $44,000 of the 2017 transfers in 2018 and held $58,000 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 $66,000 in 2017 and $96,000 in 2018. Of this inventory, $37,000 of the 2017 transfers were retained and then sold by Protrade in 2018, whereas $51,000 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 $112,000, although its book value was only $66,000 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: