If a Subsidiary Issues a Stock Dividend, Which of the Following

question 38

Multiple Choice

If a subsidiary issues a stock dividend, which of the following statements is true?

• A) Investment in subsidiary on the parent's books will increase.
• B) Investment in subsidiary on the parent's books will decrease.
• C) Additional paid-in capital on the parent's books will increase.
• D) Additional paid-in capital on the parent's books will decrease.
• E) No adjustment is necessary.

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