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  3. a subsidiary issues new shares of common stock. if

A subsidiary issues new shares of common stock. If the parent acquires all of these...

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Accounting

A subsidiary issues new shares of common stock. If the parent acquires all of these shares at an amount greater than book value, which of the following statements is true?

No adjustment will be necessary.

Retained earnings will increase.

Additional paid-in capital will decrease.

The investment in subsidiary will increase.

The investment in subsidiary will decrease.

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