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_____ Concerning a Parent That Has an Investment in Its

Question 56

Multiple Choice

_____ Concerning a parent that has an investment in its subsidiary's preferred stock, which of the following statements is true?


A) If the parent's cost of the preferred stock holding differs from its share of the book value of the preferred stock holding, the carrying value of the investment in the preferred stock may be adjusted to such book value.
B) The subsidiary's preferred stock held by the parent company is not treated as part of the noncontrolling interest in consolidation.
C) The parent should account for its holdings using the equity method.
D) All of the above.
E) None of the above.

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