Problem 6-21 (LO 6-7) Neill Company purchases 80 percent of the common stock of Stamford Company on January 1, 2017, when Stamford has the following stockholders' equity accounts: Common stock-40,000 shares outstanding100,000 Additional paid-in capital Retained earnings, 1/1/17 Total stockholders' equity 75,000 540,000 715,000 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, 2018, Stamford reports retained earnings of $620,000. Neill has accrued the increase in Stamford's retained earnings through application of the equity method. On January 1,2018, 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? Multiple Choice Has no effect on it. Decreases it by $55,000. Increases it by $44,000. Decreases it by $35,200