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:

Dopamine

A neurotransmitter in the brain essential for the reward system, motivation, pleasure, and motor function.

ACh

Short for Acetylcholine, a neurotransmitter in both the central and peripheral nervous systems that plays key roles in the function of muscles, learning, and memory.

Pituitary Gland

A small endocrine gland in the brain involved in regulating vital body functions and general wellbeing, through the secretion of hormones.

Growth Spurt

A rapid period of growth, typically occurring during puberty, in which the body experiences significant physical changes.