Pro 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 26.6 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 Pro as a result of Schroeder’s issuance of additional shares.

b. Give the entry to be recorded on Pro’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 consolidation entry needed to prepare a consolidated balance sheet immediately after Schroeder’s issuance of additional shares.

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