On January 1, 20X1, Paris Ltd

question 24

Multiple Choice

On January 1, 20X1, Paris Ltd. paid $600,000 for its 75% interest in the Scott Company when Scott had total equity of $550,000. Any excess of cost over book value was attributed to equipment with a 10-year life. On January 1, 20X3, Scott Company had the following stockholders' equity: On January 2, 20X3, Scott Company sold 2,500 additional shares of stock for $90 each in a private offering to noncontrolling shareholders. As a result of this sale, which of the following changes would appear in the 20X3 consolidated statements?

• A)$7,500 gain
• B)$37,500 loss
• C)$7,500 increase in controlling paid-in capital
• D)$37,500 decrease in controlling paid-in capital

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Definitions:

Thoreau

Henry David Thoreau, a 19th-century American essayist, poet, and philosopher known for his writings on nature and society.

Natural World

The aspects of our environment that are not created or significantly altered by human beings, including plants, animals, and ecosystems.

Land Use

The management and modification of natural environment or wilderness into built environment such as settlements and semi-natural habitats such as arable fields, pastures, and managed woods.

Materialism

A philosophical stance asserting that physical matter is the only or most fundamental reality and that all being and processes can be explained as manifestations or results of matter.