Which of the Following Statements Is True Regarding the Sale

question 1

Multiple Choice

Which of the following statements is true regarding the sale of subsidiary shares when using the acquisition method for accounting for business combinations?

• A) If control continues, the difference between selling price and acquisition value is recorded as a realized gain or loss.
• B) If control continues, the difference between selling price and acquisition value is an unrealized gain or loss.
• C) If control continues, the difference between selling price and carrying value is recorded as an adjustment to additional paid-in capital.
• D) If control continues, the difference between selling price and carrying value is recorded as a realized gain or loss.
• E) If control continues, the difference between selling price and carrying value is recorded as an adjustment to retained earnings.

---

Definitions:

Interventions

Actions or strategies implemented to improve a situation or address a problem, often in medical, educational, or social contexts.

Incremental Models

Theoretical frameworks that view abilities or traits as subject to change and improvement through effort and experience.

Multidimensional Models

Theoretical frameworks suggesting that complex phenomena, including psychological constructs, are comprised of multiple interrelated elements or dimensions.

Stage Models

A theoretical approach that describes human development, behavior, or processes in distinct phases, each with its own set of characteristics.