A subsidiary's acquisition of its common stock from minority stockholders for the treasury at a cost (equal to current fair value) of $84 a share results in:
A) A nonoperating gain if the per-share carrying amount of the parent company's investment in the subsidiary is more than $84 a share
B) An extraordinary gain if the per-share carrying amount of the parent company's investment in the subsidiary is less than $84 a share
C) An extraordinary loss if the per-share carrying amount of the parent company's investment in the subsidiary is more than $84 a share
D) Subsidiary goodwill if the per-share carrying amount of the minority interest acquired is less than $84 a share
Correct Answer:
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