Browne Corporation purchased 11,000 shares of Schroeder Corporation on January 1, 20X3, at book value. At that date, the fair value of the noncontrolling interest was equal to 26.7 percent of Schroeder’s book value. On December 31, 20X8, Schroeder reported these balance sheet amounts:

On January 1, 20X9, Schroeder issued an additional 5,000 shares of its $10 par value common stock to Nonaffiliated Company for $80 per share.

Required
a. Compute the change in book value of the shares held by Browne as a result of Schroeder’s issuance of additional shares.
b. Give the entry to be recorded on Browne’s books to recognize the change in book value of the shares it holds, assuming the change in book value is to be treated as an adjustment to additional paid-in capital.
c. Record the elimination entry needed to prepare a consolidated balance sheet immediately after Schroeder’s issuance of additionalshares.

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50,000 100,000 150,000 600,000 Additional Paid-In Capita 50,000 400,000 $750,000 80,000 Accounts Payable 120,000 Bonds Payable 200,000 Common Stock Cash Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation 250,000) Retained Earnings Total Assets $750,000 Total Liabilities & Equities