Which of the Following Statements Is False Regarding Multiple Acquisitions

Multiple Choice

Which of the following statements is false regarding multiple acquisitions of a subsidiary's existing common stock and using the acquisition method per SFAS 141(R) ?

A) The parent recognizes a larger percent of income from subsidiary
B) A step acquisition resulting in control may result in a parent recognizing a gain on revaluation
C) The book value of the subsidiary will increase
D) The parent's percent ownership in subsidiary will increase
E) Non-controlling interest in subsidiary's net income will decrease