1. A parent company’s correctly prepared journal entry to record the out-of-pocket costs of the acquisition of the subsidiary’s outstanding common stock in a business combination was as follows (explanation omitted):

Investment in Sullivan Company Common Stock 36,800 Cash 36,800 The implication of the foregoing journal entry is that the consideration issued by the parent company for the outstanding common stock of the subsidiary was:

a. Cash.

b. Bonds.

c. Common stock.

d. Cash, bonds, or common stock.