Subsidiary Company S had the following stockholders’ equity on January 1, 2018, prior to issuing 5,000 additional new shares: Prior to the sale of additional shares, the parent owned 90,000 shares....

Subsidiary Company S had the following stockholders’ equity on January 1, 2018, prior to issuing 5,000 additional new shares:

Prior to the sale of additional shares, the parent owned 90,000 shares. Assume that the parent acquired the shares at a price equal to their book value. Assume that the new shares are sold for $45 each. Describe the general impact (no calculations required) the sale will have on the parent’s investment account if:

a. The parent buys less than 90% of the new shares.

b. The parent buys 90% of the new shares.

c. The parent buys all the new shares.