On January 1, 2011, Riney Co

question 22

Multiple Choice

On January 1, 2011, Riney Co. owned 80% 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 $552,000, and the non-controlling interest was $138,000. On January 1, 2011, 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?

• A) $552,000.
• B) $560,000.
• C) $460,000.
• D) $404,000.
• E) $672,000.

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Definitions:

Function

A connection framework between a pack of inputs and a slew of endorsed outputs, ensuring each input leads to a distinct output.

Composition

In mathematics, the operation of applying one function to the results of another, denoted as \((f \circ g)(x) = f(g(x))\).

Function

A relationship or expression involving one or more variables.

Logarithm

A mathematical operation that determines the power to which a base must be raised to produce a given number.