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In 2012, Ouyang Inc. held a 15% equity ownership interest in Huang Inc., which was classified as available-for-sale. During the year, the value of this investment decreased by $2 million. In 2013, Ouyang Inc. increased its ownership interest to 60%. Ouyang Inc. reported the following information.EXHIBIT A: Ouyang Inc. (in millions)Financial InformationYear ending Dec 31, 2013Year ending Dec 31, 2012Sales1,6391,427Operating income283217Net income877320132012Total assets3,8272,839Shareholders’ equity729689EXHIBIT B: Huang Inc. (in millions)Financial InformationYear ending Dec 31, 2013Year ending Dec 31, 2012Sales1,182928Operating income7268Net income5347Dividends paid303020132012Total assets989827Shareholders’ equity3893741.In 2012, the income of Ouyang Inc. includes a contribution from its investment in Huang Inc. that is closest to:A) $10.5 millionB) $9.5 millionC) $ 6.5 millionD) $4.5 millionE) $2.5 million2.At Dec 31, 2013, Ouyang’s total shareholders’ equity on its balance sheet would most likely be:A) highest if Ouyang Inc. is deemed to have control of Huang Inc.;B) highest if Ouyang Inc. has not increased its stake in Huang Inc.;C) independent of the accounting method used for the investment in Huang Inc.;D) lowest if Ouyang Inc. is deemed to have control of Huang Inc.;E) highest if Ouyang Inc. is deemed to have no stake in Huang Inc.;Assuming that Ouyang Inc. in 2012 held a 10 percent stake in Huang Inc. that was classified as held for trading securities. During the year, the value of this stake increased by $7 million. In 2013, Ouyang Inc. increased the ownership to 40%. Use the following financial information to answer questions 3-5.EXHIBIT A: Ouyang Inc. (in millions)Financial InformationYear ending Dec 31, 2013Year ending Dec 31, 2012Sales1,6391,427Operating income283217Net income877320132012Total assets3,8272,839Shareholders’ equity729689EXHIBIT B: Huang Inc. (in millions)Financial InformationYear ending Dec 31, 2013Year ending Dec 31, 2012Sales1,182928Operating income7268Net income5347Dividends paid303020132012Total assets989827Shareholders’ equity3893743.In 2012, the income of Ouyang Inc. includes a contribution from its investment in Huang Inc. that is closest to:A) $13 millionB) $10 millionC) $ 5 millionD) $1 millionE) ($1 million).4.If Ouyang Inc. is deemed to have significant influence over Huang Inc., its 2013 net income (in $ millions) would be closest to:A) 108.2B) 113.5C) 124.5D) 132.5E) 138.75.If Ouyang Inc. is deemed to have control over Huang Inc., its 2013 consolidated sales (in millions) will be closest to:A) 1,639B) 1,875.4C) 2,821D) 3,827E) 4,2930