on january 1 2011 james company purchases 70 of the common stock of craft company for 245000/

In 2012, the net income of Craft from January 1 through April 30 is $30,000. On January 1, 2011, the only tangible asset of Craft that is undervalued is equipment, which is worth $20,000 more than book value. The equipment has a remaining life of four years, and straight-line depreciation is used. Any remaining excess is goodwill.
In the last quarter of 2012, Craft sells $50,000 in goods to James, at a gross profit rate of 30%. On December 31, 2012, $10,000 of these goods are in James ending inventory. The trial balances for the companies on December 31, 2012, are as follows: