On January 2, 2012, Forsyth Co

question 6

Multiple Choice

On January 2, 2012, Forsyth Co. acquired 4,000 shares of Hiram Company common stock for $44,000 and classified these shares as available-for-sale securities. During 2012, Forsyth received $12,000 of cash dividends. The fair value of Hiram's stock on December 31, 2012, was $14 per share. Forsyth should report the following amount in 2012 related to Hiram Co.

• A) Revenue of $12,000
• B) Revenue of $24,000
• C) A $56,000 decrease in the investment account
• D) A $56,000 increase in the investment account

Calculate the net income attributable to the noncontrolling interest in a consolidated entity.

Prepare financial statement consolidations including adjustments for intra-entity transactions.

Analyze the effects of intra-entity equipment sales on depreciation and consolidated net income.

Understand and explain the concept of intra-entity transfers within consolidated financial statements.

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Definitions:

Ischialgia

Pain along the sciatic nerve usually caused by pressure or damage to the nerve, commonly referred to as sciatica.

Lumbodynia

Pain located in the lumbar region or lower back.

Arthralgia

Pain in a joint, often related to arthritis or other joint conditions.

Ischial

Pertaining to the ischium, which is part of the hip bone.