Paul & Stephan: on January 1, 20X1, Paul, Inc On January 2, 20X3, Stephan Sold 2,000 Additional Shares in a 90

Paul & Stephan: On January 1, 20X1, Paul, Inc. acquired a 90% interest in Stephan Company. The $45,000 excess of purchase price (parent's share only) was attributable to goodwill. On January 1, 20X3, Stephan Company had the following stockholders' equity:
$\begin{array}{lr}\text { Common stock, } \$ 10 \text { par } & \$ 100,000 \\\text { Other paid-in capital } & 200,000 \\\text { Retained earnings } & 300,000\end{array}$ On January 2, 20X3, Stephan sold 2,000 additional shares in a private offering.
-Refer to Paul and Stephan. Stephan issued the new shares for $70 per share; Paul, Inc. purchased 600 of the shares. As a result of this sale, there is a(n)

A) gain on the consolidated income statement of $5,000.
B) decrease in the controlling interest paid-in excess of $5,000.
C) increase in the controlling interest paid-in capital in excess of par of $5,000
D) increase in the controlling interest Retained Earnings of $5,000