Which of the following statements is incorrect regarding a parent's purchase of additional subsidiary shares?
a. There can never be an income statement gain or loss.
b. Due to the constraints of conservatism, there can never be an income statement gain but a loss should be recognized if so indicated.
c. If the price paid to reacquire the shares exceeds their book value, the debit first is used to reduce existing paid-in capital in excess of par from retirement and the balance is a debit to Retained Earnings.
d. If the price paid to reacquire the shares is less than their book value, there is a credit to paid-in capital in excess of par from retirement.
b
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If a purchaser using a periodic inventory system pays the transportation costs, then the
a. Merchandise Inventory account is increased. b. Merchandise Inventory account is not affected. c. Freight-in account is increased. d. Delivery Expense account is increased.
If publishing at a newspaper company is arranged so that editors, editorial assistants, and reporters coordinate to determine which stories should be published, this community arrangement would align with ideas brought forth by
a. Frank Gilbreth. b. Hugo Munsterberg. c. Mary Parker Follett. d. Max Weber.