1. Forde Inc. owned an 80% interest in Scott Inc on January 1, 2012, when Scott Inc had the following stockholders' equity: 
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3. Common stock ($20 par).............................. $360,000 
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5. Paid-in capital in excess of par...................... 700,000
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7. Retained earnings.....................................440,000 
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9. Total stockholders' equity.......................... $1,500,000 
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11. On July 1, 2012, Scott Inc sold 10,000 additional shares to minority shareholders in a public offering for $50 per share. Scott Inc's net income for 2012 was $160,000, and the income was earned evenly during the year. Forde Inc. uses the simple equity method to record the investment in Scott Inc. Summary entries are made each December 31 to record the year's activity. 
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13. Required: 
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15. Prepare Forde Inc. equity adjustments for 2012 that result from changes in the investment in ScottInc. account. Assume Forde Inc. has $1,000,000 of paid-in capital in excess of par.

Answer rating: 100% (QA)

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