Porter & Solheim: On January 1, 20X1, Porter, Inc. paid $600,000 for its 75% interest in Solheim Company when Solheim had total equity of $550,000. Any excess of cost over book value was attributable to equipment with a 10-year life. Porter's investment in Solheim Company is recorded under the cost method.
Solheim had the following stockholders' equity on the dates shown:
$\begin{array}{lrrr}&1 / 1 / \mathrm{X} 1&1 / 1 / \mathrm{X} 3&1 / 1 / \mathrm{X} 4\
\text { Common stock } \$ 10 \text { par } & \$ 100,000 & \$ 100,000 & \$ 125,000 \
\text { Other paid-in capital } & 200,000 & 200,000 & 375,000 \
\text { Retained earnings } & 250,000 & 350,000 & 400,000
\end{array}$
-Refer to Porter & Solheim. On January 2, 20X3, Solheim Company sold 2,500 additional shares of stock for $80 each in a private offering to noncontrolling shareholders. As a result of this issuance, the Porter's "Investment in Solheim" account should be adjusted by ____.

Question

Porter & Solheim: On January 1, 20X1, Porter, Inc. paid $600,000 for its 75% interest in Solheim Company when Solheim had total equity of $550,000. Any excess of cost over book value was attributable to equipment with a 10-year life. Porter's investment in Solheim Company is recorded under the cost method.
Solheim had the following stockholders' equity on the dates shown:
 $\begin{array}{lrrr}&1 / 1 / \mathrm{X} 1&1 / 1 / \mathrm{X} 3&1 / 1 / \mathrm{X} 4\
\text { Common stock } \$ 10 \text { par } & \$ 100,000 & \$ 100,000 & \$ 125,000 \
\text { Other paid-in capital } & 200,000 & 200,000 & 375,000 \
\text { Retained earnings } & 250,000 & 350,000 & 400,000
\end{array}$
-Refer to Porter & Solheim. On January 2, 20X3, Solheim Company sold 2,500 additional shares of stock for $80 each in a private offering to noncontrolling shareholders. As a result of this issuance, the Porter's "Investment in Solheim" account should be adjusted by ____.

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The Answer is A

Porter & Solheim: on January 1, 20X1, Porter, Inc -Refer to Porter & Solheim