Parr Company Owned 24,000 of the 30,000 Outstanding Common Shares

question 2

Multiple Choice

Parr Company owned 24,000 of the 30,000 outstanding common shares of Solomon Company on January 1,2016.Parr's shares were purchased at book value when the fair values of Solomon's assets and liabilities were equal to their book values.The stockholders' equity of Solomon Company on January 1,2016,consisted of the following: Solomon Company sold 7,500 additional shares of common stock for $90 per share on January 2,2016.If Parr Company purchased all 7,500 shares,the book entry to record the purchase should increase the Investment in Solomon Company account by:

• A)$562,500.
• B)$590,625.
• C)$675,000.
• D)$150,000.

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Definitions:

Hospice Care

A type of care designed to provide comfort and support to patients and their families during the final phase of a terminal illness.

Terminally Ill

refers to a condition in which an illness or medical condition is deemed incurable and is expected to lead to the death of the patient in a relatively short period.

Grief

A deep emotional response to loss, particularly to the death of a loved one, encompassing various stages of sadness, anger, and acceptance.

Bereavement

The period of mourning and grief after losing a loved one through death.