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:

For the year ended December 31, 20X8, Ajax reported $80,000 of income from its separate operations (excluding income from intercorporate investments), Beta reported net income of $37,500, and Cole reported net income of $20,000.

Required
a. Compute the amount to be reported as consolidated net income for 20X8.
b. Compute the amount to be reported as inventory in the December 31, 20X8, consolidated balance sheet for the preceding items.
c. Compute the amount to be reported as income assigned to noncontrolling shareholders in the 20X8 consolidated incomestatement.

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Production Cost Transfer Unsold at Year Price End of Year Sold Year Producer Buyer 20X7 Beta Corporation $24,000 Ajax Corporation $30,000 $10,000 20X8 20X7 Cole Corporation 60,000 Beta Corporation 72,000 18,000 20X8 7,000 20x9 12,000 20x9 15,000 20x9 20x8 Ajax Corporation 15,000 Beta Corporation 35,000 20x8 Beta Corporation 63,000 Cole Corporation 72,000 20x8 Cole Corporation 27,000 Ajax Corporation 45,000