A partially owned subsidiary declared dividend and half remains unpaid by the end of the year, which of the following is CORRECT? A. The total amount of the dividend will be eliminated in the working paper elimination entry by debiting “dividend” account. B. Half of the amount of the dividend will be used to reduce the profit of the parent for consolidation purposes. C. The elimination entry will include a debit to non-controlling interest for the amount of dividend received by the non-controlling shareholders. D. The transaction will increase the balance of NCI at the
A partially owned subsidiary declared dividend and half remains unpaid by the end of the year, which of the following is CORRECT? A. The total amount of the dividend will be eliminated in the working paper elimination entry by debiting “dividend” account. B. Half of the amount of the dividend will be used to reduce the profit of the parent for consolidation purposes. C. The elimination entry will include a debit to non-controlling interest for the amount of dividend received by the non-controlling shareholders. D. The transaction will increase the balance of NCI at the
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A partially owned subsidiary declared dividend and half remains unpaid by the end of the year, which of the following is CORRECT?
A. The total amount of the dividend will be eliminated in the working paper elimination entry by debiting “dividend” account.
B. Half of the amount of the dividend will be used to reduce the profit of the parent for consolidation purposes.
C. The elimination entry will include a debit to non-controlling interest for the amount of dividend received by the non-controlling shareholders.
D. The transaction will increase the balance of NCI at the end.
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