A parent company's equity interest in a subsidiary may change as the result of the issuance of additional shares of stock by the subsidiary. Describe the effect on the parent's investment account when the new shares are (a) purchased ratably by the parent and noncontrolling shareholders or (b) entirely by the noncontrolling shareholders.

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The Answer of A parent company's equity interest in a subsidiary may change as the result of the issuance of additional shares of stock by the subsidiary. Describe the effect on the parent's investment account when the new shares are (a) purchased ratably by the parent and noncontrolling shareholders or (b) entirely by the noncontrolling shareholders.

A Parent Company's Equity Interest in a Subsidiary May Change