Box owned all Oval Inc. Although the Investment in Oval Inc. account had a balance...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Box owned all Oval Inc. Although the Investment in Oval Inc. account had a balance of $834K, the subsidiary's 12K shares had an underlying book value of only $56 per share. On January 1, 2017, Oval issued 3K new shares to the public for $70 per share. How does this transaction affect the Investment in Oval Inc. account? A) It should be decreased by $215,000. B) It should be increased by $220,000. C) It should be increased by $165,000. D) It should be decreased by $1,200. E) It is not affected since the shares were sold to outside parties.
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.