Consider a sale of stock by a subsidiary to parties outside the consolidated entity. This transaction requires an adjustment of the parents investment and additional paid-in capital accounts except when
A. the shares are sold below book value per share.
B. the shares are sold above book value per share.
C. the shares are sold at book value per share.
D. All of the above are correct.
Answer:C
Consider a sale of stock by a subsidiary to parties outside the consolidated entity. This transaction requires an adjustment of the parents investment and additional paid-in capital accounts except when
A. the shares are sold below book value per share. B. the shares are sold above book value per share. C. the shares are sold at book value per share. D. All of the above are correct.