Ajax Corporation purchased at book value 70 percent of the ownership of Beta Corporation and 90 percent of the ownership of Cole Corporation in 20X5. There are frequent intercompany transfers among the companies. Activity relevant to \(20 \mathrm{X} 8\) is presented below.

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

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

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Production Transfer Unsold at Year Year Producer Cost Buyer Price End of Year Sold 20X7 Beta Corporation $24,000 Ajax Corporation $30,000 $10,000 20X8 20X7 Cole Corporation 60,000 Beta Corporation 72.000 18,000 20X8 20X8 Ajax Corporation 15.000 Beta Corporation 35.000 7,000 20X9 20X8 Beta Corporation 63,000 Cole Corporation 72.000 12,000 20X9 20X8 Cole Corporation 27,000 Ajax Corporation 45.000 15.000 20X9