Use the Following Information to Answer the Question(s) Below -If SOS Sold the Additional Shares Directly to Great,Great's Investment

question 25

Multiple Choice

Use the following information to answer the question(s) below.

Great Corporation acquired a 90% interest in SOS Corporation at its $810,000 book value on December 31, 2013. A summary of the stockholders' equity for SOS at the end of 2013 and 2014 is as follows:

$$\begin{array} { l l l } & \underline { 12 / 31 / 13 } & \underline { 12 / 31 / 14 } \\\text { Capital stock, } \$ 10 \text { par } & \$ 600,000 & \$ 500,000 \\\text { Additional paid-in capital }& 30,000 & 30,000 \\\text { Retained Earnings } & \underline { 270,000 } & \underline { 420,000 } \\\text { Total stockholders' equity }&\underline { \$900,000}&\underline { \$1,050.000}\end{array}$$
-If SOS sold the additional shares directly to Great,Great's Investment in SOS account after the sale would be

• A)$1,350,000.
• B)$1,395,000.
• C)$1,425,000.
• D)$1,500,000.

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Definitions:

Self-fulfilling Prophecy

A belief or expectation that an individual holds that comes true because the individual's behaviors align to fulfill that belief.

Prejudice

Preconceived opinion that is not based on reason or actual experience, often leading to discrimination.

Micro-aggression

Brief, everyday exchanges that send denigrating messages to individuals because of their group membership, often unintentional and unrecognized by the sender.

Devalued Group

A social group that is not respected or is considered inferior by the dominant culture or society.