A 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 by a subsidiary does not affect the parent company's investment account's carrying amount. It merely reallocates part of the subsidiary's retained earnings to contributed capital, without changing the overall equity or the value of the parent's investment.

A Stock Dividend by a Subsidiary Causes