A Parent Company Reduced Its Ownership in Its Subsidiary from 80

question 3

Multiple Choice

A parent company reduced its ownership in its subsidiary from 80% to 15%. How should this be reported on the parent's consolidated financial statements?

• A)As a disposal of its interest in the subsidiary and a reacquisition of the retained interest at fair value
• B)As a disposal of its interest in the subsidiary and a reacquisition of the retained interest at book value
• C)As a write-down to the retained interest
• D)As an adjustment to the shareholders' equity

Differentiate between reasoning, judgment, problem solving, and decision making in cognitive processes.

Identify factors that influence the likelihood of engaging in System II thinking.

Analyze the impact of cognitive biases on judgment and decision-making.

Understand the role of intuition and analysis in cognitive processes.