Subsidiary Company S had the following stockholders equity on January 1, 2018, prior to issuing 5,000 additional

Question:

Subsidiary Company S had the following stockholders’ equity on January 1, 2018, prior to issuing 5,000 additional new shares:

Common stock ($1 par), 100,000 shares issued and outstanding Paid-in capital in excess of par Retained

Prior to the sale of additional shares, the parent owned 90,000 shares. Assume that the parent acquired the shares at a price equal to their book value. Assume that the new shares are sold for $45 each. Describe the general impact (no calculations required) the sale will have on the parent’s investment account if:

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