For Questions 9 and 10

Plum Corporation acquired 80 percent of Saucy Corporation's common shares on January 1, 20X7, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 20 percent of the book value of Saucy Corporation. Saucy prepared the following balance sheet as of December 31, 20X8:

Cash	$	70,000		Accounts Payable	$	40,000
Accounts Receivable		60,000		Bonds Payable		50,000
Inventory		80,000		Common Stock		150,000
Buildings and Equipment		400,000		Additional Paid-In Capital		50,000
Less: Accumulated Depreciation		(120,000)		Retained Earnings		200,000
Total Assets	$	490,000		Total Liabilities and Equities	$	490,000

On January 1, 20X9, Saucy declares a stock dividend of 9,000 shares on its $5 par value common stock. The current market price per share of Saucy stock on January 1, 20X9, is $20.

9) Based on the preceding information, the investment elimination entry required to prepare a consolidated balance sheet immediately after the stock dividend is issued will include a debit to Additional Paid-In Capital for:

A) $50,000.

B) $95,000.

C) $230,000.

D) $185,000.

10) Based on the preceding information, the investment elimination entry required to prepare a consolidated balance sheet immediately after the stock dividend is issued will include a debit to Retained Earnings for:

A) $200,000

B) $65,000

C) $155,000

D) $20,000