_____When a parent that has a 75%-owned subsidiary sells 20% of its holdings at more than 20% of the carrying value of the investment, which of the following will occur or result?
A) The parent will record a gain under the parent company concept that will be eliminated in consolidation.
B) The parent will record an increase to Additional Paid-in Capital under the economic unit concept that will be eliminated in consolidation.
C) The parent will record a gain under the parent company concept that will not be eliminated in consolidation.
D) The parent will record an increase to Additional Paid-in Capital under the economic unit concept that will not be eliminated in consolidation.
E) None of the above.

Question

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The Answer of _____When a parent that has a 75%-owned subsidiary sells 20% of its holdings at more than 20% of the carrying value of the investment, which of the following will occur or result?
A) The parent will record a gain under the parent company concept that will be eliminated in consolidation.
B) The parent will record an increase to Additional Paid-in Capital under the economic unit concept that will be eliminated in consolidation.
C) The parent will record a gain under the parent company concept that will not be eliminated in consolidation.
D) The parent will record an increase to Additional Paid-in Capital under the economic unit concept that will not be eliminated in consolidation.
E) None of the above.

_____When a Parent That Has a 75%-Owned Subsidiary Sells 20