If a subsidiary issues new shares of its stock to noncontrolling stockholders, the book value of the parent's interest in the subsidiary may:
A) increase.
B) decrease.
C) remain the same.
D) increase, decrease, or remain the same.

Question

Quizplus · Accepted Answer

When a subsidiary issues new shares of its stock to noncontrolling stockholders, the book value of the parent's interest in the subsidiary can increase, decrease, or remain the same depending on the terms of the issuance and the impact on the parent's percentage ownership and the subsidiary's equity.

If a Subsidiary Issues New Shares of Its Stock to Noncontrolling