1. Compute the change in book value of the shares held by Pro as a result of Schroeders issuance of additional shares. (Do not round the percentage of stock held.)

A. CHANGE IN BOOK VALUE OF SHARES:

2. Prepare the entry to be recorded on Pros books to recognize the change in book value of the shares it holds, assuming the change in book value is to be treated as an adjustment to additional paid-in capital.

A. Record the entry to recognize the change in book value of the shares held.

3. Record the consolidation entry needed to prepare a consolidated balance sheet immediately after Schroeders issuance of additional shares.

A. Record the basic consolidation entry.

Pro Corporation purchased 11.000 shares of Schroeder Corporation on January 1, 20X3, at book value. At that date the fair value of the noncontrolling interest was equal to 31.3 percent of Schroeder's book value. On December 31, 20x8, Schroeder reported these balance sheet amounts: Assets Cash Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation Total Assets $ 89,880 128,888 200,880 640,880 (235,880) $ 822, eee Liabilities and Equities Accounts Payable Bonds Payable Common Stock Additional Paid-In Capital Retained Earnings Total Liabilities & Equities $142, eee 100,000 168,888 42,880 380, see $822,880 On January 1, 20X9. Schroeder issued an additional 4,000 shares of its $10 par value common stock to Nonaffiliated Company for $80 per share