Ajax Corporation purchased at book value 70 percent of Beta Corporation's ownership and 90 percent of Cole Corporation's ownership in 20X5. At the dates the ownership was acquired, the fair value of the noncontrolling interest was equal to a proportionate share of book value. There are frequent intercompany transfers among the companies. Activity relevant to 20X8 follows: Year Producer Production Cost Buyer Transfer Price Unsold at End of Year Year Sold
20X7 Beta Corporation $ 45,000 Ajax Corporation $ 51,000 $ 17,000 20X8
20X7 Cole Corporation 114,000 Beta Corporation 126,000 31,500 20X8
20X8 Ajax Corporation 36,000 Beta Corporation 56,000 11,200 20X9
20X8 Beta Corporation 117,000 Cole Corporation 126,000 21,000 20X9
20X8 Cole Corporation 48,000 Ajax Corporation 66,000 22,000 20X9
For the year ended December 31, 20X8, Ajax reported $86,000 of income from its separate operations (excluding income from intercorporate investments), Beta reported net income of $56,500, and Cole reported net income of $33,000.
Required:
a. Compute the amount to be reported as consolidated net income for 20X8. (Do not round intermediate calculations.)
b. Compute the amount to be reported as inventory in the December 31, 20X8, consolidated balance sheet for the preceding items. (Do not round intermediate calculations.)
c. Compute the amount to be reported as income assigned to noncontrolling shareholders in the 20X8 consolidated income statement. (Do not round intermediate calculations.)