If the Shareholders' Equity Allocated to the Subsidiary's Preference Shares

Multiple Choice

If the shareholders' equity allocated to the subsidiary's preference shares amounts to $240,000 and the parent company acquires 60% of the subsidiary's preference shares at a cost of $150,000, how much will the amount of cash on the consolidated balance sheet change as a result of this transaction?

A) It will not change.
B) It will increase by $150,000.
C) It will decrease by $144,000.
D) It will decrease by $150,000.