Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2020, for $556,000 in cash and other consideration. At the acquisition date, Protrade assessed Seacraft's identifiable assets and liabilities at a collective net fair value of $695,000, and the fair value of the 20 percent noncontrolling interest was $139,000. 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, 2021: Protrade Seacraft Sales $ 810,000 $ 530,000 Cost of goods sold 375,000 282,000 Operating expenses 167,000 122,000 Retained earnings, 1/1/21 910,000 350,000 Inventory 363,000 127,000 Buildings (net) 375,000 174,000 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 $107,000 in 2020 and $127,000 in 2021. Of this inventory, Seacraft retained and then sold $45,000 of the 2020 transfers in 2021 and held $59,000 of the 2021 transfers until 2022. Determine balances for the following items that would appear on consolidated financial statements for 2021: Cost of Goods Sold Inventory Net Income Attributable to Noncontrolling Interest Assume that Seacraft sells inventory to Protrade at a markup equal to 60 percent of cost. Intra-entity transfers were $67,000 in 2020 and $97,000 in 2021. Of this inventory, $38,000 of the 2020 transfers were retained and then sold by Protrade in 2021, whereas $52,000 of the 2021 transfers were held until 2022. Determine balances for the following items that would appear on consolidated financial statements for 2021: Cost of Goods Sold Inventory Net Income Attributable to Noncontrolling Interest Protrade sells Seacraft a building on January 1, 2020, for $114,000, although its book value was only $67,000 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 2021: Buildings (net) Operating Expenses Net Income Attributable to Noncontrolling Interest

Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2020, for $556,000 in cash and other consideration. At the acquisition date, Protrade assessed Seacraft's identifiable assets and liabilities at a collective net fair value of $695,000, and the fair value of the 20 percent noncontrolling interest was $139,000. 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, 2021: Protrade Seacraft Sales $ 810,000 $ 530,000 Cost of goods sold 375,000 282,000 Operating expenses 167,000 122,000 Retained earnings, 1/1/21 910,000 350,000 Inventory 363,000 127,000 Buildings (net) 375,000 174,000 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 $107,000 in 2020 and $127,000 in 2021. Of this inventory, Seacraft retained and then sold $45,000 of the 2020 transfers in 2021 and held $59,000 of the 2021 transfers until 2022. Determine balances for the following items that would appear on consolidated financial statements for 2021: Cost of Goods Sold Inventory Net Income Attributable to Noncontrolling Interest Assume that Seacraft sells inventory to Protrade at a markup equal to 60 percent of cost. Intra-entity transfers were $67,000 in 2020 and $97,000 in 2021. Of this inventory, $38,000 of the 2020 transfers were retained and then sold by Protrade in 2021, whereas $52,000 of the 2021 transfers were held until 2022. Determine balances for the following items that would appear on consolidated financial statements for 2021: Cost of Goods Sold Inventory Net Income Attributable to Noncontrolling Interest Protrade sells Seacraft a building on January 1, 2020, for $114,000, although its book value was only $67,000 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 2021: Buildings (net) Operating Expenses Net Income Attributable to Noncontrolling Interest

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 30E

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The following selected account balances are from the individual financial records of these two companies as of December 31, 2021:

	Protrade	Seacraft
Sales	$	810,000		$	530,000
Cost of goods sold		375,000			282,000
Operating expenses		167,000			122,000
Retained earnings, 1/1/21		910,000			350,000
Inventory		363,000			127,000
Buildings (net)		375,000			174,000
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 $107,000 in 2020 and $127,000 in 2021. Of this inventory, Seacraft retained and then sold $45,000 of the 2020 transfers in 2021 and held $59,000 of the 2021 transfers until 2022.
Determine balances for the following items that would appear on consolidated financial statements for 2021:
Cost of Goods Sold
Inventory
Net Income Attributable to Noncontrolling Interest
Assume that Seacraft sells inventory to Protrade at a markup equal to 60 percent of cost. Intra-entity transfers were $67,000 in 2020 and $97,000 in 2021. Of this inventory, $38,000 of the 2020 transfers were retained and then sold by Protrade in 2021, whereas $52,000 of the 2021 transfers were held until 2022.
Determine balances for the following items that would appear on consolidated financial statements for 2021:
Cost of Goods Sold
Inventory
Net Income Attributable to Noncontrolling Interest
Protrade sells Seacraft a building on January 1, 2020, for $114,000, although its book value was only $67,000 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 2021:
Buildings (net)
Operating Expenses
Net Income Attributable to Noncontrolling Interest

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