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.

---

Definitions:

Satimbe Mask

A traditional mask used by the Dogon people of Mali, often depicting the role of women in society and associated with rituals involving ancestral worship.

Creation Legend

is a mythological narrative explaining how the world and its creatures came into existence, varying greatly among different cultures and religions.

Waka Sran

“People of wood.” Baule (Côte d’Ivoire) wood figural sculptures.

Baule

An African ethnic group from Côte d'Ivoire, known for their rich cultural heritage, including distinctive art forms such as masks and figurines.