Which of the Following Statements Is False Regarding Multiple Acquisitions

question 41

Multiple Choice

Which of the following statements is false regarding multiple acquisitions of a subsidiary's existing common stock and using the acquisition method per SFAS 141(R) ?

• A)The parent recognizes a larger percent of income from subsidiary
• 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)Non-controlling interest in subsidiary's net income will decrease

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Definitions:

Hourly Wages

Hourly wages are payments made to workers based on the number of hours worked, typically quoted as an amount of money per hour.

Margin Of Error

The ± value added to and subtracted from a point estimate in order to develop an interval estimate of a population parameter.

Confidence

The degree to which one can feel assured or certain about an inference or prediction, often expressed as a percentage.

Null Hypothesis

A default hypothesis that there is no effect or no difference, and it is subjected to a test to determine the likelihood of its accuracy.