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If a subsidiary issues a stock dividend, which of the following statements is true? A) Investment in subsidiary on the parent's books will increase. B)

If a subsidiary issues a stock dividend, which of the following statements is true?

A) Investment in subsidiary on the parent's books will increase.

B) Investment in subsidiary on the parent's books will decrease.

C) Additional paid-in capital on the parent's books will increase.

D) Additional paid-in capital on the parent's books will decrease.

E) No adjustment is necessary.

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