On January 1, 2016, Paul, Inc.acquired a 90% interest in Stephan Company.The $45,000 excess of purchase price (parent's share only) was attributable to goodwill.On January 1, 2018, Stephan Company had the following stockholders' equity: ?

\begin{array}{lr}\text { Common stock, } \$ 10 \text { par } & \$ 100,000 \\\text { Other paid-in capital } & 200,000 \\\text { Retained earnings } & 300,000\end{array}

On January 2, 2018, Stephan sold 2,000 additional shares in a private offering.Stephan issued the new shares for $80 per share; Paul, Inc.purchased all the shares.What is the journal entry that Paul will prepare to record this investment?
?
a.

\begin{array}{lcr}\text { Investment in Stephan } & 160,000 & \\\quad \text { Cash } & & 160,000 \\\end{array}

\begin{array}{lcr}\text { Investment in Stephan } & 156,692 & \\\quad \text { Paid-in Capital in Excess of Par-Paul } & & 3,308 \\\text { Cash } & & 160,000\end{array}

\begin{array}{lrc}\text { Investment in Stephan } & 157,527 & \\\text { Paid-in Capital in Excess of Par-Paul } & 2,473 & \\\quad \text { Cash } & & 160,000 \\\end{array}

\begin{array}{lrc}\text { Investment in Stephan } & 160,000 & \\\quad \text { Paid-in Capital in Excess of Par-Paul } & & 2,829 \\\quad \text { Cash } & & 157,171\end{array}

When a Subsidiary Purchases Shares of the Parent, on a Consolidated

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