A 15% stock dividend by a subsidiary causes
A)the parent company investment account to decrease.
B)the parent company investment account to remain the same.
C)the parent company investment account to increase.
D)the noncontrolling interest equity to increase.

Question

Quizplus · Accepted Answer

A stock dividend does not affect the investment account of the parent company as it is a non-cash transaction that only increases the number of shares held without changing the overall value of the investment.

A 15% Stock Dividend by a Subsidiary Causes