3. Which of the following is correct? The direct sale of additional shares to the parent company from a subsidiary a. Decreases the parent's interest and decreases the noncontrolling shareholders' interest b. Decreases the parent's interest and increases the noncontrolling shareholders' interest c. Increases the parent's interest and increases the noncontrolling shareholders' interest d. Increases the parent's interest and decreases the noncontrolling shareholders' interest 4. Pan Corporation has total stockholders' equity of P 5,000,000 consisting of P 1,000,000 of P 10 par value Common Stock, P1,000,000 of Additional Paid-in Capital, and P 3,000,000 of Retained Earnings. Pan owns 80% of Sailor Corporation's common stock purchased at book value. Sailor has P 900,000 of 10% cumulative preferred stock outstanding. Pan acquired 60% of the preferred stock of Sailor for P 500,000. After this transaction the balances in Pan's Retained Earnings and Additional Paid-in Capital accounts, respectively, are a. P 2,960,000.00 and P 1,000,000.00 b. P 3,000,000.00 and P 960,000.00 c. P 3,000,000.00 and P 1,040,000.00 d. P 3,040,000.00 and P 1,000,000.00