C 20. Thirsk Industries has investments in several other corporations and is trying to decide whether to file a consolidated income tax return. The companies in which Thirsk has stock ownership are Jefferson Corporation, Madison Company, and Gallatin Company. Assume Thirsk's common stock investments and the percentage of ownership are as follows: Jefferson Corporation 85 percent ownership Madison Company 60 percent ownership Gallatin Company 40 percent ownership Which of the companies may be consolidated in Thirsk's consolidated income tax return? A) None B) Jefferson only C) C Jefferson and Madison D) All three b 21. Crane Company sold inventory for $240,000 to its 85 percent-owned subsidiary, Ferris Company during 2001. Crane prices its inventory at 200 percent of cost. By the end of 2001, Ferris Company had sold 75 percent of the inventory to outside parties. Crane reported separate income of $1,200,000 for 2001; Ferris reported net income of $850,000. Required: A) Give the entry needed in a three-part consolidation workpaper to eliminate the effects of the intercompany transfer of inventory. B) Compute total consolidated net income for the year 2001. C) Compute the amount of income that should be assigned to the noncontrolling interest for 2001. 22. Barnard Corporation owns 90 percent of the common stock of Hudson Company. During 2001, Hudson sold inventory to Barnard for $240,000. The inventory originally cost Hudson $200,000. Barnard resold all of the inventory during the year except for 30 percent, which remained in ending inventory. For the year ended December 31, 2001, Barnard reported separate income of $1,020,000, and Hudson reported net income of $960,000. No dividends were paid by either company. Required: A) Prepare the necessary eliminating entries relating to the intercompany transfer of inventory that would appear in a three-part consolidation workpaper prepared on December 31, 2001. B) Compute total consolidated net income for the year ended December 31, 2001. Also show the amount allocated to the noncontrolling interest