On January 1, 2012, Pharma Company purchased 16,000 of the 20,000 outstanding common shares of Sludge Company for $760,000. On January 1, 2016, Pharma Company sold 2,000 of its shares of Sludge Company on the open market for $90 per share. Sludge Company's stockholders' equity on January 1, 2012, and January 1, 2016, was as follows: The difference between implied and book value is assigned to Sludge Company's land. As a result of the sale, Pharma Company's Investment in Sludge account should be credited for:

Question

On January 1, 2012, Pharma Company purchased 16,000 of the 20,000 outstanding common shares of Sludge Company for $760,000. On January 1, 2016, Pharma Company sold 2,000 of its shares of Sludge Company on the open market for $90 per share. Sludge Company's stockholders' equity on January 1, 2012, and January 1, 2016, was as follows:  The difference between implied and book value is assigned to Sludge Company's land. As a result of the sale, Pharma Company's Investment in Sludge account should be credited for:

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The Answer of On January 1, 2012, Pharma Company purchased 16,000 of the 20,000 outstanding common shares of Sludge Company for $760,000. On January 1, 2016, Pharma Company sold 2,000 of its shares of Sludge Company on the open market for $90 per share. Sludge Company's stockholders' equity on January 1, 2012, and January 1, 2016, was as follows:  The difference between implied and book value is assigned to Sludge Company's land. As a result of the sale, Pharma Company's Investment in Sludge account should be credited for:

On January 1, 2012, Pharma Company Purchased 16,000 of the 20,000