Use the Following Information for Questions 19-21

question 23

Multiple Choice

Use the following information for Questions 19-21.
On January 1, 2009, Pharma Company purchased 16,000 of the 20,000 outstanding common shares of Sludge Company for $760,000.On January 1, 2013, Pharma Company sold 2,000 of its shares of Sludge Company on the open market for $90 per share.Sludge Company's stockholders' equity on January 1, 2009, and January 1, 2013, was as follows:
1/1/09 1/1/13 The difference between implied and book value is assigned to Sludge Company's land.
-As a result of the sale, Pharma Company's Investment in Sludge account should be credited for

• A)$110,000.
• B)$137,500.
• C)$80,000.
• D)$95,000.
• E)None of these.

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Definitions:

Analytical Psychology

A branch of psychology founded by Carl Jung that focuses on the exploration of the deep, often unconscious elements of the psyche and the process of individuation.

Womb Envy

A concept in neo-Freudian psychology positing that men may experience feelings of envy towards the biological functions of the female body, such as pregnancy and childbirth.

Congruence

In psychology, congruence refers to the alignment or agreement between an individual's ideal self and actual self.

Egotism

An excessive and exaggerated sense of self-importance and lack of consideration for others’ feelings.