One Reason a Parent Company May Pay an Amount Less

question 1

Short Answer

One reason a parent company may pay an amount less than the book value of the subsidiary's stock acquired is
A)an undervaluation of the subsidiary's assets.
B)the existence of unrecorded goodwill.
C)an overvaluation of the subsidiary's liabilities. d the existence of unrecorded contingent liabilities.

• A)an undervaluation of the subsidiary's assets.
• B)the existence of unrecorded goodwill.
• C)an overvaluation of the subsidiary's liabilities. d the existence of unrecorded contingent liabilities.

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Definitions:

Dissatisfied

The feeling of unhappiness or displeasure due to unmet expectations or needs.

Depressed

A state of low mood and aversion to activity, affecting a person's thoughts, behavior, feelings, and sense of well-being.

Relational De-Escalation

The process of reducing the intensity or seriousness of a relationship.

Standard Reply

A routine or expected response to a common question or situation.