The acquisition of treasury stock by a subsidiary from noncontrolling shareholders at a price above book value
A. decreases the parents share of subsidiary book value and decreases the parents ownership percentage.
B. decreases the parents share of subsidiary book value and increases the parents ownership percentage.
C. increases the parents share of subsidiary book value and decreases the parents ownership percentage.
D. increases the parents share of subsidiary book value and increases the parents ownership percentage.
Answer:B
The acquisition of treasury stock by a subsidiary from noncontrolling shareholders at a price above book value
A. decreases the parents share of subsidiary book value and decreases the parents ownership percentage. B. decreases the parents share of subsidiary book value and increases the parents ownership percentage. C. increases the parents share of subsidiary book value and decreases the parents ownership percentage. D. increases the parents share of subsidiary book value and increases the parents ownership percentage.