If a Subsidiary Re-Acquires Its Outstanding Shares from Outside Ownership

question 40

Multiple Choice

If a subsidiary re-acquires its outstanding shares from outside ownership for more than the noncontrolling interest valuation basis at the date of buying such treasury stock, which of the following statements is true?

• A) Additional paid-in capital on the parent company's books will decrease.
• B) Investment in subsidiary will increase.
• C) Treasury stock on the parent's books will increase.
• D) Treasury stock on the parent's books will decrease.
• E) No adjustment is necessary.

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Definitions:

Venous Problems

Medical issues related to the veins, which may include conditions like varicose veins, venous insufficiency, or deep vein thrombosis.

Lower Extremity

Refers to the portion of the body that includes the legs, from the hips to the toes.

Swollen and Warm

Description of an area of the body that has become enlarged and feels hot to the touch, often indicating inflammation or infection.

Normal Pulse

The regular beat of the heart, typically measured as beats per minute, which indicates the heart's health and functioning.