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The purchase by a subsidiary of some of its shares from the noncontrolling stockholders results in an increase in the parent's percentage interest in the subsidiary. The parent company's share of the subsidiary's net assets will increase if the shares are purchased:
A. at a price equal to book value.
B. at a price below book value.
C. at a price above book value.
D. will not show an increase.

Respuesta :

Shakiru

Answer:B. At a little price below book value.

Explanation:

At this price the company is buying at a profit by paying a lower price for the assets value and the difference is added to revenue reserve to be distributed to shareholders and this will increase the parents net assets.

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