REFERENCE: Ref.06_01 on January 1,2009,Riney Co.owned 85% of the Common Stock of Stock

question 71

Multiple Choice

REFERENCE: Ref.06_01
On January 1,2009,Riney Co.owned 85% of the common stock of Garvin Co.On that date,Garvin's stockholders' equity accounts had the following balances: The balance in Riney's Investment in Garvin Co.account was $569,500,and the noncontrolling interest was $100,500.On January 1,2009,Garvin Co.sold 10,000 shares of previously unissued common stock for $15 per share.Riney did not acquire any of these shares.
-What is the balance in Investment in Garvin Co.after the sale of the 10,000 shares of common stock? (Do not round calculation of new interest. )

• A)$569,500.
• B)$580,833.
• C)$558,167.
• D)$584,500.
• E)$615,000.

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