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:

Hormonal Changes

Biochemical alterations in the body's hormone levels, affecting mood, growth, metabolism, and reproductive functions.

Neurological "Firing"

refers to the process by which neurons transmit electrical impulses, facilitating communication within the brain and between the brain and the rest of the body.

PKU

PKU, or Phenylketonuria, is a genetic disorder in which the body cannot metabolize phenylalanine, an amino acid, leading to harmful levels in the body if not treated with a special diet from infancy.

Neurological Damage

Refers to injury or impairment in the nervous system, potentially affecting the brain, spinal cord, or nerves, leading to various physical and cognitive symptoms.