$c.$ $$2,340$

An investor purchased $500$ shares of common stock, $$25$ par, for $$21,750.$

Subsequently, $100$ shares were sold for $$49\mathrm{.}50$ per share. What is the amount of gain or loss on the sale?

a$.$ $$600$ gain

b$.$ $$9,250$ loss

c$.$ $$600$ loss

d$.$ $$9,250$ gain

The equity method of accounting for investments requires

a$.$ The investment to be reported at its original cost

b$.$ The investment to be increased by the dividends paid by the investee

c$.$ The investment to be increased by the reported net income of the investee

d$.$ A year$-$end adjustment to revalue the stock to lower of cost or market

When shares of stock held as an investment are sold, the difference between the proceeds and the carrying amount of the investment is recorded as a$($n$)$

a$.$ Operating income or loss

b$.$ Gain or loss

c$.$ Paid$-$in capital addition

d$.$ Prior period adjustment

The company whose stock is more than $50\%$ owned by another company and is thus controlled by that company is called the

$-$a$.$ Subsidiary company

b$.$ Parent company

c$.$ Investee company

d$.$ Controlling company