Pine Company Purchased a 60% Interest in the Scent Company

Multiple Choice

Pine Company purchased a 60% interest in the Scent Company on January 1, 2016 for $360,000.On that date, the stockholders' equity of Scent Company was $450,000.Any excess cost on 1/1/16 was attributable to goodwill.Pine purchased another 20% interest on January 1, 2019 for $200,000.On January 1, 2019, Scent Company's stockholders' equity was $700,000, the entire increase due to retained earnings.As part of the consolidation process, the excess of the price paid over book on the new block of shares is treated as

A) ​additional goodwill
B) ​a loss on acquisition of additional subsidiary shares
C) ​an increase to Pine's Investment in Scent account
D) ​a reduction in parent's paid-in capital in excess of par