Problem 6-23 (Algo) Multiple Inventory Transfers LO 6-3, 6-4

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	66,000	Beta Corporation	78,000	19,500	20X8
20X8	Ajax Corporation	36,000	Beta Corporation	56,000	11,200	20X9
20X8	Beta Corporation	69,000	Cole Corporation	78,000	13,000	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 $53,500, and Cole reported net income of $34,000.

Required:

Compute the amount to be reported as consolidated net income for 20X8.

Note: Do not round intermediate calculations.

Compute the amount to be reported as inventory in the December 31, 20X8, consolidated balance sheet for the preceding items.

Note: Do not round intermediate calculations.

Compute the amount to be reported as income assigned to noncontrolling shareholders in the 20X8 consolidated income statement.

Note: Do not round intermediate calculations.