Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 26

Aaron owns 100 percent of the 12,000 shares of Veritable, Inc.The Investment in Veritable account has a balance of $588,000, corresponding to the subsidiary's unamortized acquisition-date fair value of $49 per share.Veritable issues 3,000 new shares to the public for $50 per share.How does this transaction affect the Investment in Veritable account
a.It is not affected because the shares were sold to outside parties.
b.It should be increased by $2,400.
c.It should be increased by $3,000.
d.It should be decreased by $117,600.