Popper Co Acquired 80% of the Common Stock of Cocker Co

question 110

Multiple Choice

Popper Co. acquired 80% of the common stock of Cocker Co. on January 1, 2019, when Cocker had the following stockholders' equity accounts. To acquire this interest in Cocker, Popper paid a total of $682,000 with any excess acquisition date fair value over book value being allocated to goodwill, which has been measured for impairment annually and has not been determined to be impaired as of January 1, 2022.Popper did not pay any premium when it acquired its original interest in Cocker. On January 1, 2022, Cocker reported a net book value of $1,113,000 before the following transactions were conducted. Popper uses the equity method to account for its investment in Cocker, thereby reflecting the change in book value of Cocker.On January 1, 2022, Cocker issued 10,000 additional shares of common stock for $35 per share. Popper acquired 8,000 of these shares. How would this transaction affect the additional paid-in capital of the parent company?

• A) Increase it by $28,700.
• B) Increase it by $16,800.
• C) $0.
• D) Increase it by $280,000.
• E) Increase it by $593,600.

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Definitions:

Progress Note

A document in the medical record where healthcare professionals record details to document a patient's clinical status or achievements during the course of a hospitalization or over the course of outpatient care.

Narrative Diagnostic

A method of diagnosing by telling and interpreting the story of a patient's condition or symptoms.

HCPCS Level I Codes

A set of codes in the Healthcare Common Procedure Coding System used for coding services, procedures, and equipment in healthcare.

Current Procedural Terminology

A set of codes used by physicians and other healthcare providers to describe the types of services rendered to patients.