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:

Population Parameter

A numerical value that summarizes a characteristic of an entire population.

Random Sampling

A method in statistical analysis where individuals or items are selected from a larger population entirely by chance, ensuring that every member has an equal opportunity of being chosen.

Convenience Sampling

A non-probability sampling method where participants are selected based on their availability and proximity to the researcher.

Judgment Sampling

A sampling method where the samples are selected based on the opinion of an expert, rather than random selection.