When a subsidiary issues shares, ________.
A)no gain or loss is recognized
B)a gain or loss is always recognized
C)this reduces the NCI
D)this may increase the NCI

Question

Quizplus · Accepted Answer

When a subsidiary issues shares, it may increase the NCI (Non-Controlling Interest) depending on who purchases the shares. If the shares are purchased by the parent company, the NCI will decrease. However, if the shares are purchased by a third party, the NCI will increase. No gain or loss is recognized in this transaction.

When a Subsidiary Issues Shares, ________