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.
c
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Which of the following is true of a completed worksheet?
A) The total debits in the unadjusted trial balance column equal the total debits in the adjusted trial balance column. B) The total debits in the income statement column equal the total credits in the balance sheet column. C) The total debits in the income statement column equal the total debits in the balance sheet column. D) The total of all the debit columns is equal to the total of all the credit columns.
The following information is from the December 31, 2017 balance sheet of Jackson Corporation
Preferred Stock, $100 par $270,000 Paid-In Capital in Excess of Par-Preferred 22,000 Common Stock, $1 par 69,000 Paid-In Capital in Excess of Par-Common 206,000 Retained Earnings 56,600 Total Stockholders' Equity $623,600 What is the average issue price of the preferred stock shares? (Round answers to the nearest dollar.) A) $108 B) $100 C) $167 D) $106