Fort Owns 70% of the Outstanding Common Shares of Sort

question 23

Multiple Choice

Fort owns 70% of the outstanding common shares of Sort.On December 30,20X3,Sort sold some equipment to Fort for $100,000.The equipment had been purchased by Sort for $120,000 in 20X2,had accumulated amortization of $30,000 and a six-year remaining life at December 31,20X3.Both companies record a full year of amortization expense for assets purchased in the first half of the year and no amortization on assets purchased in the last half of the year.Equipment for Fort and Sort on their separate-entity balance sheets at December 31,20X3 was as follows:

What is the non-controlling interest's share of the consolidation adjustment on the balance sheet at December 31,20X3?

• A)$0
• B)$3,000
• C)$30,000
• D)$36,000

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Definitions:

Sample Space

The set of all possible outcomes or events in a statistical experiment.

Flipping Three Quarters

A probabilistic experiment involving tossing three quarters and analyzing the outcomes, typically related to studying probability distributions.

Probabilities

Measures the likelihood or chance of various outcomes in a set of circumstances or an experiment.

Probability Mass Function

A mathematical operation that determines the likelihood that a specific discrete random variable matches a particular value exactly.