If a Subsidiary Has Both Common and Preferred Stock Outstanding

question 33

Multiple Choice

If a subsidiary has both common and preferred stock outstanding, a parent must own a controlling interest in:

• A) both the subsidiary's common and preferred stock to justify consolidation.
• B) the subsidiary's common stock to justify consolidation.
• C) the subsidiary's common stock and at least 20% of the subsidiary's preferred stock to justify consolidation.
• D) the subsidiary's common stock and more than 50% of the subsidiary's preferred stock to justify consolidation.

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Definitions:

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