Parker owned all of Odom Inc. Although the Investment in Odom Inc. account had a balance of $834,000, the subsidiary's 12,000 shares had an underlying book value of only $56 per share. On January 1, 2018, Odom issued 3,000 new shares to the public for $70 per share. How does this transaction affect the Investment in Odom Inc. account?

rev: 11_15_2017_QC_CS-108273

Multiple Choice

• It should be decreased by $210,000.
• It should be increased by $210,000.
• It should be increased by $168,000.
• It should be increased by $1,200.
• It is not affected since the shares were sold to outside parties.