_____When a subsidiary issues additional common stock at below book value, which of the following could occur or result?
A) No adjustment is required to the carrying value of the investment.
B) The noncontrolling interest will decrease.
C) Under the parent company concept, a loss would be reported by the parent that will not be eliminated in consolidation.
D) The carrying value of any unamortized goodwill could increase.
E) None of the above.

Question

Quizplus · Accepted Answer

When a subsidiary issues additional common stock at below book value, the parent company may recognize a loss under the parent company concept, as the value of its investment in the subsidiary decreases.

_____When a Subsidiary Issues Additional Common Stock at Below Book