A wholly owned subsidiary declared dividend and half remains unpaid by the end of the year, which of the following is TRUE? a. Only half of the amount of the dividend will be used to reduce the profit of the parent for consolidation purposes. b. The total amount of the dividend will be eliminated in the working paper
A wholly owned subsidiary declared dividend and half remains unpaid by the end of the year, which of the following is TRUE? a. Only half of the amount of the dividend will be used to reduce the profit of the parent for consolidation purposes. b. The total amount of the dividend will be eliminated in the working paper
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A wholly owned subsidiary declared dividend and half remains unpaid by
the end of the year, which of the following is TRUE?
a. Only half of the amount of the dividend will be used to reduce the profit of
the parent for consolidation purposes.
b. The total amount of the dividend will be eliminated in the working paper
elimination entry by debiting “dividend revenue” account.
c. The transaction will have an impact in the computation of the balance of
NCI at the end.
d. The elimination entry will include a debit to non-controlling interest for the
amount of dividend received by the non-controlling shareholders.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education