Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

18. Compute the following: Ajax Corporation purchased at book value 70 percent of Beta Corporation's ownership and 90 percent of Cole Corporation's ownership in 205.

18.

image text in transcribed

Compute the following:

image text in transcribed Ajax Corporation purchased at book value 70 percent of Beta Corporation's ownership and 90 percent of Cole Corporation's ownership in 205. 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 208 follows: Jld For the year ended December 31,208, 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 208. (Do not round intermediate calculations.) b. Compute the amount to be reported as inventory in the December 31,208, 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 208 consolidated income statement. (Do not round intermediate calculations.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Practical Approach

Authors: Robyn Moroney

1st Canadian Edition

978-1118472972, 1118472977, 978-1742165943

More Books

Students also viewed these Accounting questions