Neil Company Purchases 80 percent of the common stock of Stamford Company on January 1st, 2013, when Stamford has the following Stockholders equity accounts:

Common Stock - 40,000 shares outstanding 100,000

Additional Paid in Capital 75,000

Retained Earnings 1/1/13 540,000

Total Stockholders Equity 715,000

To acquire this interest in Stamford, Neill pays a total of $592,000. The acquisition-date fair value of the 20 percent noncontrolling interest was $148,000. Any-excess fair value was allocated to goodwill, which has not experienced any impairment. On January 1, 2014, Stamford reports retained earnings of $620,000 Neill has accrued the increase in Stamford's retained earnings through application of the equity method. View the following problems as independent situations: On January 1, 2014, Stamford issues 10,000 additional shares of common stock for $25 per share. Neill acquires 8,000 of these shares. How will this transaction affect the parent company's Additional Paid-In Capital account? Has no effect on it. Increases it by $20, 500. Increases it by $36, 400. Increases it by $82, 300. On January 1, 2014, Stamford issues 10,000 additional shares of common stock for $15 per share. Neill does not acquire any of this newly issued stock. How does this transaction affect the parent company's Additional Paid-In Capital account? Has no effect on it. Increases it by $44,000. Decreases it by $35, 200. Decreases it by $55,000. On January 1, 2014, Stamford reacquires 8,000 of the outstanding shares of its own common stock for $24 per share. None of these shares belonged to Neill. How does this transaction affect the parent company's Additional Paid-In Capital account? Has no effect on it. Decreases it by $55,000. Decreases it by $35,000. Decreases it by $28,000