When a Parent Purchases a Portion of the Newly Issued

Multiple Choice

When a parent purchases a portion of the newly issued stock of its subsidiary in a private offering and the ownership interest decreases,

A) ​any difference between the change in equity and the price paid is the excess of cost or book value attributable to the new block.
B) ​any difference between the change in equity and the price paid is viewed as a gain or loss on the sale of an interest.
C) ​any difference between the change in equity and the price paid is viewed as a change in paid-in capital or retained earnings.
D) ​there will be no adjustment.