If the Shareholders' Equity Allocated to the Subsidiary's Preference Shares

question 42

Multiple Choice

If the shareholders' equity allocated to the subsidiary's preference shares amounts to $240,000 and the parent company acquires 60% of the subsidiary's preference shares at a cost of $150,000, how much will the non-controlling interest in the preferred shares amount to after the purchase by the parent?

• A) $90,000
• B) $96,000
• C) $120,000
• D) $240,000

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Definitions:

Stylistic Device

Techniques used by writers and speakers to give an expressive, effective, and creative form to their works or speech.

De-emphasize

De-emphasize means to reduce the significance, attention, or stress given to a particular element or aspect within communication or presentation.

Active Voice

A grammatical structure where the subject of the sentence performs the action expressed by the verb.

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A grammatical voice where the subject of the sentence is acted upon by the verb, often used to remove focus from the subject or to create a sense of generality.