_____The parent does not make any adjustment to the total carrying value of its Investment in Subsidiary account when the subsidiary acquires the noncontrolling interest:
A) Providing the subsidiary paid more than the book value per share.
B) Providing the subsidiary paid less than the book value per share.
C) Regardless of whether the subsidiary paid more or less than the book value per share.
D) Unless the Securities and Exchange Commission requires an adjustment to be made.
E) Unless there is a permanent impairment in value to the carrying value of the investment.

Question

Quizplus · Accepted Answer

C) Regardless of whether the subsidiary paid more or less than the book value per share, the parent does not adjust the carrying value of its Investment in Subsidiary account for transactions solely between the subsidiary and noncontrolling interests. These transactions affect the equity section among shareholders but do not impact the consolidated carrying value of the investment from the parent's perspective.

_____The Parent Does Not Make Any Adjustment to the Total