On January 1, 2011, Riney Co. owned 80% of the common stock of Garvin Co. On that

Question:

On January 1, 2011, Riney Co. owned 80% of the of Garvin Co. On that date, Garvin's stockholders' equity accounts had the following balances:
Common stock (5 par value)...........................$250,0000
Additional paid-in capital.................................110,000
Retained earnings..........................................330,0003
Total stockholders' equity................................$690,000
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 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? Please provide detailed calculation.
A. $552,000
B. $560,000
C. $460,000
D. $404,000
E. $672,000
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...