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

question 11

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 amount of cash on the consolidated balance sheet change as a result of this transaction?

• A) It will not change.
• B) It will increase by $150,000.
• C) It will decrease by $144,000.
• D) It will decrease by $150,000.

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Definitions:

Galvanic Skin Response

A physiological phenomenon where the skin's electrical conductance changes in response to emotional arousal or stimuli.

Facial Expressions

The movements of the facial muscles that convey emotions, intentions, and reactions to others.

Fundamental Emotions

Basic emotions that are universally recognized and experienced by all humans, such as happiness, sadness, fear, disgust, surprise, and anger.

Paul Ekman

A renowned psychologist known for his research on the classification of human emotions and their expression through facial expressions.