A Parent Company Reduced Its Ownership in Its Subsidiary from 80

Multiple Choice

A parent company reduced its ownership in its subsidiary from 80% to 15%. How should this be reported on the parent's consolidated financial statements?

A) As a disposal of its interest in the subsidiary and a reacquisition of the retained interest at fair value
B) As a disposal of its interest in the subsidiary and a reacquisition of the retained interest at book value
C) As a write-down to the retained interest
D) As an adjustment to the shareholders' equity