Company P Owns 80% of the 10,000 Outstanding Common Stock

Multiple Choice

Company P owns 80% of the 10,000 outstanding common stock of Company S.If Company S issues 2,500 added shares of common stock, and Company P purchases some of the newly issued shares, which of the following statements is true?

A) ​Other than recording the purchase, there is no adjustment to the controlling interest if the parent purchases all the shares issued.
B) ​Other than recording the purchase, there is no adjustment to the controlling interest if the parent does not purchase any of the shares issued.
C) ​Other than recording the purchase, there is no adjustment to the controlling interest if the parent purchases 80% of the shares issued.
D) There is a new excess of cost over book value or excess of book value over cost if the parent purchases 80% of the newly issued shares.