Visual aids must be used generously in a presentation

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.

Losses are disallowed for transactions between a partnership and a partner who has a 50 percent interest in the partnership

a. True b. False Indicate whether the statement is true or false