On October 31, 2006, Palomar Corporation Prepared the Following Journal

On October 31, 2006, Palomar Corporation prepared the following journal entry (explanation, omitted) regarding its investment in its partially owned subsidiary, San Diego Company: If no accompanying journal entry was prepared by Palomar, the most likely cause of the foregoing journal entry was:

A) San Diego issued additional shares of common stock to the public at a price per share less than the per-share carrying amount of Palomar's investment in San Diego
B) Palomar disposed of some of its investment in San Diego at a price per share less than the per-share carrying amount of Palomar's investment in San Diego
C) San Diego issued additional shares of common stock to Palomar at a price per share greater than the per-share carrying amount of Palomar's earlier investment in San Diego
D) Some other transaction or event