40) Based on the preceding information, by what amount did the Investment in Siena account change?

A) Increase of $296,500

B) Decrease of $296,500

C) Increase of $64,000

D) Decrease of $64,000

Answer: A

41) Based on the preceding information, the elimination entry to prepare the consolidated financial statements on December 31, 20X7 would include a:

A) credit to common stock for $625,000

B) debit to retained earnings for $37,500

C) credit to Investment in Siena Co. for $976,500

D) credit to NCI in the net assets of Siena Co. for $232,500

Answer: C

42) Based on the preceding information, the ending balance in Additional Paid-In Capital would be:

A) $0

B) $187,500

C) $312,500

D) $125,000

Answer: B

Please explain how to get these answers!!!