These Questions Are Based on the Following Information and Should

question 102

Multiple Choice

These questions are based on the following information and should be viewed as independent situations. Popper Co. acquired 80% of the common stock of Cocker Co. on January 1, 2011, when Cocker had the following stockholders' equity accounts. $$\begin{array} { l r } \text { Common stock - 40,000 shares outstanding } & \$ 140,000 \\\text { Additional paid-in capital } & 105,000 \\\text { Retained earnings } & 476,000 \\ \text { Total stockholders' equity } & \$ 721,000 \\\end{array}$$ 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, 2014.
On January 1, 2014, 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, 2014, 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:

Voltage-Gated Channels

Protein channels in cell membranes that open or close in response to changes in membrane potential, crucial for nerve impulse transmission.

Receptor Proteins

Proteins on the surface of cells that bind to specific molecules, initiating a biological response.

Chemical Signal Molecules

Substances released by cells that transmit messages to other parts of the body to initiate, amplify, or inhibit biological processes.

Enzymes

Biological molecules that act as catalysts to speed up chemical reactions in living organisms, crucial for metabolic processes.