15. Reasons a parent company may pay more than book value for the subsidiary company's...

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Accounting

15. Reasons a parent company may pay more than book value for the subsidiary company's stock include all of the following EXCEPT:

A) the fair value of one of the subsidiary's assets may exceed its recorded value because of appreciation.

B) the existence of unrecorded goodwill.

C) liabilities may be overvalued.

D) stockholders' equity may be undervalued.

Please explain how you got your answer and explain why its not option A

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