Reference no: EM131782759

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