On january 1 2009 cocker issued 10000 additional shares of

Reference no: EM13589900

Popper Co. acquired 80% of the common stock of Cocker Co. on January 1, 2004, when Cocker had the following stockholders' equity accounts.

common stock.................................140,000

additional PIC...................................105,000

Retained Earnings..........................476,000

Total stockholders equity...............721,000

To acquire this interest in Cocker, Popper paid a total of $682,000 with any excess acquisition date fair value over book value being allocated to goodwill, which has been measured for impairment annually and has not been determined to be impaired as of January 1, 2009.
On January 1, 2009, Cocker reported a net book value of $1,113,000 before the following transactions were conducted. Popper uses the equity method to account for its investment in Cocker, thereby reflecting the change in book value of Cocker.

On January 1, 2009, Cocker issued 10,000 additional shares of common stock for $21 per share. Popper did not acquire any of this newly issued stock. How would this transaction affect the additional paid-in capital of the parent company?

Reference no: EM13589900

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