Which of the Following Statements Is False Regarding Multiple Acquisitions

question 76

Multiple Choice

Which of the following statements is false regarding multiple acquisitions of a subsidiary's existing common stock?

• A) The parent recognizes a larger percent of subsidiary income.
• B) A step acquisition resulting in control may result in a parent recognizing a gain on revaluation.
• C) The book value of the subsidiary will increase.
• D) The parent's percent ownership in subsidiary will increase.
• E) Noncontrolling interest in subsidiary's net income will decrease.

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Definitions:

Click-On

A type of contract or agreement, common in software and online services, that becomes binding when a user indicates their acceptance by clicking a button or link, usually labeled "I Agree."

Goods Packaged

Refers to products that have been wrapped, boxed, or presented in some form of packaging before sale or shipment.

Uniform Electronic Transactions Act

Legislation adopted by some jurisdictions to establish legal equivalence between electronic records and signatures and their paper counterparts, facilitating the legality of digital transactions.

UETA

The Uniform Electronic Transactions Act, which establishes legal recognition for electronic signatures and records in commercial transactions.