6-40 [LO6] Albuquerque, Inc., acquired 36,000 shares of Marmon Company several years ago for $720,000. At the acquisition date, Marmon reported a book value of $750,000, and Albuquerque assessed the fair value of the noncontrolling interest at $80,000. Any excess of acquisition-date fair value over book value was assigned to broadcast licenses with indefinite lives. Since the acquisition date and until this point, Marmon has issued no additional shares. No impairment has been recognized for the broadcast licenses. At the present time, Marmon reports $790,000 as total stockholders equity, which is broken down as follows: Common stock ($11 par value) $440,000 Additional paid-in capital 270,000 Retained earnings 80,000 -------------------------------------------------------------------------------- Total $790,000 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- View the following as independent situations: a. Marmon sells 8,000 shares of previously unissued common stock to the public for $22 per share. Albuquerque purchased none of this stock. What journal entry should Albuquerque make to recognize the impact of this stock transaction? General Journal Debit Credit (Click to select)Bonds PayableInvestment in MarmonNoncontrolling InterestAdditional Paid-In CapitalCommon StockInterest ExpensePremium on Bonds PayableRetained Earnings (Click to select)Additional Paid-In CapitalBonds PayablePremium on Bonds PayableInterest ExpenseCommon StockNoncontrolling InterestInvestment in MarmonRetained Earnings -------------------------------------------------------------------------------- b. Marmon sells 5,000 shares of previously unissued common stock to the public for $20 per share. Albuquerque purchased none of this stock. What journal entry should Albuquerque make to recognize the impact of this stock transaction? (Do not round your intermediate percentage values.) General Journal Debit Credit (Click to select)Premium on Bonds PayableRetained EarningsCommon StockAdditional Paid-In CapitalNoncontrolling InterestBonds PayableInterest ExpenseInvestment in Marmon (Click to select)Additional Paid-In CapitalInvestment in MarmonCommon StockInterest ExpensePremium on Bonds PayableBonds PayableRetained EarningsNoncontrolling Interest