On January 1, 20X7, Pisa Company acquired 80 percent of Siena Company by purchasing 40,000 shares of Siena's common stock. There was no differential related to this transaction. The noncontrolling interest had a fair value equal to 20 percent of book value. The book value of Siena on December 31, 20X7 was as follows: Common Stock ($10 par value)$500,000 Retained Earnings 350,000 Total$850,000   On January 1, 20X8, Pisa purchased an additional 12,500 shares directly from Siena for $25 per share.Based on the preceding information, by what amount did the Investment in Siena account change?

A. Increase of $296,500
B. Increase of $64,000
C. Decrease of $64,000
D. Decrease of $296,500


Answer: A

Business

You might also like to view...

Sources of secondary information include

A) first-hand observation. B) in-person interviews. C) newspapers and periodicals. D) experiments. E) an online survey designed specifically for your project.

Business

In a short essay, discuss the differences between problem-identification research and problem-solving research. Include a description of situations in which each type of research would be most appropriate

What will be an ideal response?

Business

What term is used to describe the process of allocating the cost of natural resources to expense?

What will be an ideal response?

Business

If you were thinking about a washing machine as a system, which of the following represents the process?

A. The light indicating that the washer is off balance and has stopped. B. The wash and rinse cycle. C. The dirty clothes, water, and detergent. D. The clean clothes.

Business