Parr Company Owned 24,000 of the 30,000 Outstanding Common Shares

question 7

Multiple Choice

Parr Company owned 24,000 of the 30,000 outstanding common shares of Solomon Company on January 1, 2013.Parr's shares were purchased at book value when the fair values of Solomon's assets and liabilities were equal to their book values.The stockholders' equity of Solomon Company on January 1, 2013, consisted of the following: Solomon Company sold 7,500 additional shares of common stock for $90 per share on January 2, 2013.If Parr Company purchased all 7,500 shares, the book entry to record the purchase should increase the Investment in Solomon Company account by

• A)$562,500.
• B)$590,625.
• C)$675,000.
• D)$150,000.
• E)Some other account.why now have 5 choices? most professors would prefer the consistency of 4 only - be consistent

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Definitions:

Demand Characteristics

Cues in an experimental setting that influence participants' perceptions or behavior, potentially skewing results.

Perception of Quality

The subjective assessment of a product or service's overall excellence or desirability.

Taste Test

A method of evaluating a food item's flavor, texture, and aroma preferences among consumers.

Flavour

The distinctive taste and aroma of food or drink, stemming from its ingredients and preparation methods.