the equity method? It changes the interest in the subsidiary. 11]. Can gain or losses to a parentnvestor result from a subsidiary'snvestee's treasury stock transactions? Explain. Gains or losses from a subsidiary's treasury stock transactions does not affect a parenttinvestor. 11. Do common stock dividends and stock splits by a subsidiary affect the amounts that appear in the consolidated financial statements? Explain, indicating the items, if any, that would be affected. No, it only affects the subsidiary in retained earnings and the amounts involved in eiiminations for the subsidiary's stockholders' equity account. E 0-5 Computations and worlqiaper entries {mid-year acquisition) Pig Corporation paid $1,214,000 cash for ?9 percent of the common stock of Set Corporation on June 1, 2011. The assets and liabilities of Set wee fairly valued, and any' fair valuefbook T.ralue differential is goodwill. Data related to the stockholders' equityr of Set are as follows: Stockholders: Equity December 31, 2010i Common stock, $10 par 1,000,000 Retained earnings 400,000