Which of the Following Statements Is False Regarding Multiple Acquisitions

question 76

Multiple Choice

Which of the following statements is false regarding multiple acquisitions of a subsidiary's existing common stock?

• A) The parent recognizes a larger percent of subsidiary income.
• 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) Noncontrolling interest in subsidiary's net income will decrease.

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Definitions:

Vertical Alignment

The positioning of text or objects in a document or spreadsheet relative to the top and bottom margins of a page or cell.

Landscape Orientation

A page or image orientation where the width is greater than the height, commonly used for panoramic views or wider presentations.

Portrait Orientation

A page or screen layout where the height is greater than the width, commonly used for documents, mobile screens, and photographs.

Margins

The blank spaces surrounding the text on a page, which help define where a line of text begins and ends and contribute to the overall readability of the document.