Balance Sheet Information for Pawn Company and Its 90%-Owned Subsidiary

Multiple Choice

Balance sheet information for Pawn Company and its 90%-owned subsidiary, Sox Corporation, at December 31, 2016, is summarized as follows:
$\begin{array}{lrr}&\text { Pawn } & \text { Sox }\\ \text { Current assets-net } & \$ 200,000 & \$ 50,000 \\\text { Property, plant, and equipment-net } & 1,000,000 & 600,000 \\\text { Investment in Sox } &558,000 \\&\$ 1,758,000 & \$ 650,000\\\\\text { Current liabilities } & \$ 100,000 & \$ 30,000 \\\text { Capital stock } & 800,000 & 400,000 \\\text { Retained earnings } & 858,000 & 220,000 \\& \$ 1,758,000 & \$ 650,000\end{array}$

Pawn acquired its interest in Sox for cash at book value several years ago when Sox's assets and liabilities were equal to their fair values.

The consolidated balance sheet of Pawn and Sox at December 31, 2016 will show

A) Investment in Sioux, $558,000.
B) Capital stock, $800,000.
C) Retained earnings, $1,078,000.
D) Non-controlling interest, $65,000.