When a Parent Sells Its Interest in a Subsidiary,any Profit

question 21

Multiple Choice

When a parent sells its interest in a subsidiary,any profit or loss generated by the subsidiary:

• A) is transferred to the parent's investment in subsidiary account, and used to calculate the amount of profit or loss on the sale of the shares.
• B) is immediately transferred to the equity section of the consolidated accounts, and is then available from distribution to shareholders.
• C) is set off against any remaining balance in the goodwill on acquisition account, with any remaining amount distributed as dividends to the new owners.
• D) is to be recorded in the consolidated financial statements for the period of the year that the parent had control of the subsidiary.

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Definitions:

Indoor Air Pollution

Indoor air pollution is the contamination of indoor air by pollutants from various sources like building materials, furnishings, and activities inside, potentially causing health issues for inhabitants.

Secondary Pollutants

Pollutants that are not emitted directly into the air; they form in the atmosphere when primary pollutants react chemically with other substances.

Stationary Source

Fixed locations or sites that release pollutants into the environment, such as factories, power plants, and refineries.

Mobile Source

Mobile source refers to any non-stationary source of air pollutants, such as vehicles, planes, and ships, contributing significantly to air pollution.