Asked by Carmen LeMaster on Jul 22, 2024
Verified
Panton, Inc. acquired 18,000 shares of Glotfelty Corp. several years ago for $30 per share when Glotfelty had a book value of $450,000. Before and after that time, Glotfelty's stock traded at $30 per share. At the present time, Glotfelty reports the following stockholders' equity: 
Glotfelty issues 5,000 shares of previously unissued stock to the public for $22 per share. None of this stock is purchased by Panton.Describe how this transaction would affect Panton's books.
Stockholders' Equity
The residual interest in the assets of a corporation that remains after deducting its liabilities, representing the owners' claim on the company.
Unissued Stock
Shares that have been authorized by a company's charter but have not been issued or sold to investors.
Shares
Units of ownership interest in a corporation or financial asset, representing an equal proportion of the company's capital.
- Assess how stock dealings influence a parent company's investment in its subsidiary.
Verified Answer
SB
Shelbe ButnerJul 26, 2024
Final Answer :
The investment account and APIC would be decreased by $55,800, as shown below: 
Learning Objectives
- Assess how stock dealings influence a parent company's investment in its subsidiary.