The following selected account balances are from the individual financial records of these two companies as of December 31,2024 :
able[[Items,Protrade,Seacraft],[Sales,$760,000,$480,000
The following selected account balances are from the individual financial records of these two companies as of December 31,2024:
Items Sales Cost of goods sold Operating expenses Retained earnings, 1/1/24 Inventory Buildings (net) Investment income
Protrade $760,000 350,000 162,000 860,000 358,000 370,000 Not given
Seacraft $480,000 257,000 117,000 300,000 122,000 169,000 0
Each of the following problems is an independent situation
Required:
a. Assume that Protrade sells Seacraft inventory at a markup equal to 60 percent of cost. Intra-entity transfers were $102,000 in 2023 and $122,000 in 2024.Of this inventory,Seacraft retained and then sold $40,000 of the 2023 transfers in 2024 and held $54,000 of the2024transfers until2025
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 60 percent of cost.Intra-entity transfers were $62,000 in 2023 and $92,000 in 2024.Of this inventory,$33,000 of the 2023 transfers were retained and then sold by Protrade in 2024 whereas$47,000of the 2024transfers were held until 2025
