The Acquisition of Treasury Stock by a Subsidiary from Noncontrolling

question 33

Multiple Choice

The acquisition of treasury stock by a subsidiary from noncontrolling shareholders at a price above book value

• A)decreases the parent's share of subsidiary book value and decreases the parent's ownership percentage.
• B)decreases the parent's share of subsidiary book value and increases the parent's ownership percentage.
• C)increases the parent's share of subsidiary book value and decreases the parent's ownership percentage.
• D)increases the parent's share of subsidiary book value and increases the parent's ownership percentage.

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Definitions:

Impossible Figures

Optical illusions or drawings of objects that appear to be real and three-dimensional but are geometrically impossible to exist in reality.

Three-Dimensional Space

A geometric setting in which three values are required to determine the position of an element (point, object).

Two-Dimensional Pictures

Images with only height and width, lacking the depth dimension, used in various visual contexts.

Comparators

Devices or mechanisms used to compare the value of one thing against another in various contexts, such as electronics or psychology.