7.Polk Company owned 24,000 of the 30,000 outstanding common shares of Sloan Company on January 1, 2010. Polks shares were purchased at book value when the fair values of Sloans assets and liabilities were equal to their book values. The stockholders equity of Sloan Company on January 1, 2010, consisted of the following:

Common stock, $15 par value$ 450,000

Other contributed capital337,500

Retained earnings 712,500

Total$1,500,000

Sloan Company sold 7,500 additional shares of common stock for $90 per share on January 2, 2010. If all 7,500 shares were sold to noncontrolling stockholders, the workpaper adjustment needed each time a workpaper is prepared should increase (decrease) the Investment in Sloan Company by

a.($140,625).

b.$140,625.

c.($112,500).

d.$192,000.

e.None of these.