If a subsidiary has both common and preferred stock outstanding, a parent must own a controlling interest in:

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Quizplus · Accepted Answer

A controlling interest for consolidation purposes typically refers to the ownership of a majority of a subsidiary's common stock, as common stock represents control through voting rights. Preferred stock usually does not carry voting rights or control over the company, making the ownership percentage of preferred stock irrelevant for consolidation decisions.

If a Subsidiary Has Both Common and Preferred Stock Outstanding