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A subsidiary issues new shares of common stock at an amount below book value. Outsiders buy all of these shares. Which of the following statements
A subsidiary issues new shares of common stock at an amount below book value. Outsiders buy all of these shares. Which of the following statements is true?
The parent's additional paid-in capital will be increased.
The parent's retained earnings will be increased.
The parent's investment in subsidiary will be increased.
The parent's additional paid-in capital will be decreased.
The parent's retained earnings will be decreased.
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