test practice 5 - 74. award: 0 out of 0 points Net cash...

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74. award: 0 out of 0 points Net cash flow from financing activities was: $(129,000). $(96,000). $(300,000). $(80,000). $(126,000). How do subsidiary stock warrants outstanding affect consolidated earnings per share? They will be included in both basic and diluted earnings per share if they are dilutive. They will only be included in diluted earnings per share if they are dilutive. They will only be included in basic earnings per share if they are dilutive. Only the warrants owned by the parent company affect consolidated earnings per share. Because the warrants are for subsidiary shares, there will be no effect on consolidated earnings per share. A parent company owns a controlling interest in a subsidiary whose stock has a book value of $27 per share. The last day of the year, the subsidiary issues new shares entirely to outside parties at $33 per share. The parent still holds control over the subsidiary. Which of the following statements is true? Since the sale was made at the end of the year, the parent's investment account is not affected. Since the shares were sold for more than book value, the parent's investment account must be increased. Since the shares were sold for more than book value, the parent's investment account must be decreased. Since the shares were sold for more than book value but the parent did not buy any of the shares, the parent's investment account is not affected. None of the above. A parent company owns a controlling interest in a subsidiary whose stock has a book value of $27 per share. The last day of the year, the subsidiary issues new shares entirely to outside parties at $25 per share. The parent still holds control over the subsidiary. Which of the following statements is true? Since the sale was made at the end of the year, the parent's investment account is not affected. Since the shares were sold for less than book value, the parent's investment account must be increased. Since the shares were sold for less than book value, the parent's investment account must be decreased. Since the shares were sold for less than book value but the parent did not buy any of the shares, the
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test practice 5 - 74. award: 0 out of 0 points Net cash...

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