Which of the following statements is true regarding the sale of subsidiary shares when using the acquisition method for accounting for business combinations?
A) If control continues, the difference between selling price and acquisition value is recorded as a realized gain or loss.
B) If control continues, the difference between selling price and acquisition value is an unrealized gain or loss.
C) If control continues, the difference between selling price and carrying value is recorded as an adjustment to additional paid-in capital.
D) If control continues, the difference between selling price and carrying value is recorded as a realized gain or loss.
E) If control continues, the difference between selling price and carrying value is recorded as an adjustment to retained earnings.

Question

Quizplus · Accepted Answer

If control continues, the difference between the selling price and carrying value is recorded as an adjustment to additional paid-in capital, not as a gain or loss.

Which of the Following Statements Is True Regarding the Sale