The Purchase by a Subsidiary of Some of Its Shares

Multiple Choice

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.