Problem $6-36($Algo$)($LO $6-7)$

DeMilo, Incorporated, owns $100$ percent of the $44,000$ outstanding shares of Ricardo, Incorporated. DeMilo currently carries the

Investment in Ricardo account at $$345,600$ using the equity method.

Ricardo issues $6,000$ new shares to the public for $$15\mathrm{.}25$ per share.

Required:

How does this transaction affect the Investment in Ricardo account that appears on DeMilo's financial records?

Investment in Ricardo should be

by