On January 1, 2011, Riney Co The Balance in Riney's Investment in Garvin Co

question 13

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: $\begin{array}{lr}\text { Common stock ( } \$ 5 \text { par value) } & \$ 250,000 \\\text { Additional paid-in capital } & 110,000 \\\text { Retained earnings } & 330,000\\\text { Total stockholders' equity }&\$690,000\end{array}$ The balance in Riney's Investment in Garvin Co. account was $552,000, and the noncontrolling 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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