Ajax Corporation purchased at book value 70 percent of Beta Corporation's ownership and 90 percent of Cole Corporation'sownership in 20X5. At the dates the ownership was acquired, the fair value of the noncontrolling interest was equal to a proportionateshare of book value. There are frequent intercompany transfers among the companies. Activity relevant to 20X8 follows:ProducerBeta CorporationCole CorporationAjax CorporationBeta CorporationCole CorporationYearProduction CostTransfer Price Unsold at End of Year Year Sold$30,00066,000BuyerAjax CorporationBeta Corporation20X7$36,000$12,00020X820x778,00020XB19,5008,20013,00020x821,00069,00033,000Beta CorporationCole CorporationAjax Corporation41,00078,00051,00020х920x820X920x817,00020X9For the year ended December 31, 20X8, Ajax reported $98,000 of income from its separate operations (excluding income fromintercorporate investments), Beta reported net income of $54,500, and Cole reported net income of $21,000.Required:a. Compute the amount to be reported as consolidated net income for 20X8. (Do not round intermediate calculations.)Consolidated net income$ 166,000b. 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.)Inventoryc. Compute the amount to be reported as income assigned to noncontrolling shareholders in the 20X8 consolidated incomestatement. (Do not round intermediate calculations.)

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 Transfer Price Unsold at End of Year Year Sold Buyer Ajax Corporation Beta Corporation Beta Corporation Cole Corporation Ajax Corporation $12,000 19,500 20X7 Beta Corporation Cole Corporation Ajax Corporation Beta Corporation Cole Corporation $30,000 $36,000 20X8 66,000 21,000 69,000 33,000 20x7 78,000 41,000 20X8 20X8 8,200 13,000 17,000 20х9 78,000 51,000 20x8 20X9 20x8 20х9 For the year ended December 31, 20X8, Ajax reported $98,000 of income from its separate operations (excluding income from intercorporate investments), Beta reported net income of $54,500, and Cole reported net income of $21,000.

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 Transfer Price Unsold at End of Year Year Sold Buyer Ajax Corporation Beta Corporation Beta Corporation Cole Corporation Ajax Corporation $12,000 19,500 20X7 Beta Corporation Cole Corporation Ajax Corporation Beta Corporation Cole Corporation $30,000 $36,000 20X8 66,000 21,000 69,000 33,000 20x7 78,000 41,000 20X8 20X8 8,200 13,000 17,000 20х9 78,000 51,000 20x8 20X9 20x8 20х9 For the year ended December 31, 20X8, Ajax reported $98,000 of income from its separate operations (excluding income from intercorporate investments), Beta reported net income of $54,500, and Cole reported net income of $21,000.

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Question

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:
Producer
Beta Corporation
Cole Corporation
Ajax Corporation
Beta Corporation
Cole Corporation
Year
Production Cost
Transfer Price Unsold at End of Year Year Sold
$30,000
66,000
Buyer
Ajax Corporation
Beta Corporation
20X7
$36,000
$12,000
20X8
20x7
78,000
20XB
19,500
8,200
13,000
20x8
21,000
69,000
33,000
Beta Corporation
Cole Corporation
Ajax Corporation
41,000
78,000
51,000
20х9
20x8
20X9
20x8
17,000
20X9
For the year ended December 31, 20X8, Ajax reported $98,000 of income from its separate operations (excluding income from
intercorporate investments), Beta reported net income of $54,500, and Cole reported net income of $21,000.
Required:
a. Compute the amount to be reported as consolidated net income for 20X8. (Do not round intermediate calculations.)
Consolidated net income
$ 166,000
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.)
Inventory
c. Compute the amount to be reported as income assigned to noncontrolling shareholders in the 20X8 consolidated income
statement. (Do not round intermediate calculations.)

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