Question - On January 1, 2011, Riney Co. owned 80% of the common stock of Garvin Co. On that date, Garvin's stockholder's equity accounts had the following balances:
Common Stock ($5 par value) $250,000
Additional Paid on Capital $110,000
Retained Earnings $330,000
Total Stockholder's Equity $690,000
The balance in Riney's Investment in Garvin Co account was $552,000, and the non-controlling interest was $138,000. On January 1, 2011, Garvin Co. sold 10,000 shares of previously unissed common stock for $15 per share. Riney did not acquire any of these shares.
QUESTION:
What is the balance in investment in Garvin Co. after the sale of the 10,000 shares of common stock?
a) $552,000
b) $560,000
c) $460,000
d) $404,000
e) $672,000
What is the balance in non-controlling interest in Garvin Co. after the sale of the 10,000 shares of common stock?
a) $138,000
b) $101,000
c) $280,000
d) $230,000
e) $168,000