Multiple Choice
Mohan owned all of Beatty Inc. Although the Investment in Beatty Inc. account had a balance of $862,000, the subsidiary's 12,000 shares had an underlying book value of only $55 per share. On January 1, 2021, Beatty issued 4,000 new shares to the public for $75 per share. How does this transaction affect the Investment in Beatty Inc. account?
A) It should be decreased by $225,000.
B) It should be increased by $225,000.
C) It should be increased by $9,500.
D) It should be decreased by $9,500.
E) It is not affected since the shares were sold to outside parties.
Correct Answer:
Verified
Correct Answer:
Verified
Q67: Thomas Inc. had the following stockholders' equity
Q68: Regency Corp. recently acquired $500,000 of the
Q69: Which of the following variable interests entitles
Q70: Fargus Corporation owned 51% of the voting
Q71: Akers Co. owned 8,000 shares (80%) of
Q73: Parent Corporation recently acquired some of its
Q74: Parent Corporation acquired some of its subsidiary's
Q75: The balance sheets of Butler, Inc. and
Q76: Webb Company purchased 90% of Jones Company
Q77: Davis Company has had bonds payable of