On January 1, 2021, Rhodes Co. owned 75% of the common stock of Brock Co. On that date, Brock's stockholders' equity accounts had the following balances: The balance in Rhodes's Investment in Brock Co. account was $570,000, and the noncontrolling interest was $190,000. On January 1, 2021, Brock Co. sold 10,000 shares of previously unissued common stock for $12 per share. Rhodes did not acquire any of these shares.What is the balance in Rhodes's Investment in Brock Co. account following the sale of the 10,000 shares of common stock?
A) $403,000.
B) $550,000.
C) $570,000.
D) $660,000.
E) $880,000.

Question

On January 1, 2021, Rhodes Co. owned 75% of the common stock of Brock Co. On that date, Brock's stockholders' equity accounts had the following balances:  The balance in Rhodes's Investment in Brock Co. account was $570,000, and the noncontrolling interest was $190,000. On January 1, 2021, Brock Co. sold 10,000 shares of previously unissued common stock for $12 per share. Rhodes did not acquire any of these shares.What is the balance in Rhodes's Investment in Brock Co. account following the sale of the 10,000 shares of common stock?
A) $403,000. 
B) $550,000. 
C) $570,000. 
D) $660,000. 
E) $880,000.

Quizplus · Accepted Answer

The Answer of On January 1, 2021, Rhodes Co. owned 75% of the common stock of Brock Co. On that date, Brock's stockholders' equity accounts had the following balances:  The balance in Rhodes's Investment in Brock Co. account was $570,000, and the noncontrolling interest was $190,000. On January 1, 2021, Brock Co. sold 10,000 shares of previously unissued common stock for $12 per share. Rhodes did not acquire any of these shares.What is the balance in Rhodes's Investment in Brock Co. account following the sale of the 10,000 shares of common stock?
A) $403,000. 
B) $550,000. 
C) $570,000. 
D) $660,000. 
E) $880,000.