When a Parent Sells Its Subsidiary Interest, a Gain (Loss)

question 20

Short Answer

When a parent sells its subsidiary interest, a gain (loss) is recognized if the parent ?
$\begin{array}{l}&\text { sells its } &\text{ sells part but } &\text{ sells part and }\\& \text { entire investment } &\text { retains control} &\text { loses control } \\\end{array}$
A) $\begin{array}{l}&&&\text {Yes } &&&&& & \text { Yes } &&&&& \text { No } \\\end{array}$
B) $\begin{array}{l}&&&\text {Yes } &&&&&& & \text { No } &&&& \text { Yes } \\\end{array}$
C) $\begin{array}{l}&&&\text {No } &&&&&& & \text { No }&&&& & \text { No } \\\end{array}$
D) $\begin{array}{l}&&&\text {No } &&&&&& & \text { No } &&&&& \text { Yes }\end{array}$

• A)\(\begin{array}{l}&&&\text {Yes } &&&&& & \text { Yes } &&&&& \text { No } \\\end{array}\)
• B)\(\begin{array}{l}&&&\text {Yes } &&&&&& & \text { No } &&&& \text { Yes } \\\end{array}\)
• C)\(\begin{array}{l}&&&\text {No } &&&&&& & \text { No }&&&& & \text { No } \\\end{array}\)
• D)\(\begin{array}{l}&&&\text {No } &&&&&& & \text { No } &&&&& \text { Yes }
• \end{array}\)

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Definitions:

Gifted Students

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