If a Subsidiary Issues a Stock Dividend, Which of the Following

question 38

Multiple Choice

If a subsidiary issues a stock dividend, which of the following statements is true?

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

---

Definitions:

Cardiac Pain

Pain specifically associated with the heart, commonly referred to as chest pain, which can indicate conditions such as angina or a heart attack.

Antacids

Over-the-counter medications that neutralize stomach acid to relieve heartburn and indigestion.

Pulse Oximetry

A non-invasive method of measuring the oxygen saturation level of the blood, indicating how well oxygen is being sent to parts of the body furthest from the heart.

Chronic Obstructive Pulmonary Disease (COPD)

A group of lung diseases, including emphysema and chronic bronchitis, that block airflow and make breathing difficult.