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These questions are based on the following information and should be viewed as independent situations.Popper Co. acquired 80% of the common stock of Cocker Co. on January 1, 2009, when Cocker had thefollowing stockholders’ equity accounts.To acquire this interest in Cocker, Popper paid a total of $682,000 with any excess acquisition date fairvalue over book value being allocated to goodwill, which has been measured for impairment annually andhas not been determined to be impaired as of January 1, 2012.On January 1, 2012, Cocker reported a net book value of $1,113,000 before the following transactionswere conducted. Popper uses the equity method to account for its investment in Cocker, thereby reflectingthe change in book value of Cocker.On January 1, 2012, Cocker issued 10,000 additional shares of common stock for $21 per share. Popperdid not acquire any of this newly issued stock. How would this transaction affect the additional paid-incapital of the parent company?A. $0.B. Decrease it by $23,240.C. Decrease it by $68,250.D. Decrease it by $45,060.E. Decrease it by $43,680.Need the step by step breakdown to solve this.
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