Scott company paid $2,800,000 yo acquire all of the common stock of dawn corporation on January 1, 2023. dawn's reported earnings for 20230 totaled %512,000 and it paid $160,000 in dividends during the year. the amortization of allocations related to the investment was $28,000. Scott's net income, not including the investment, was $3,310,000 and it paid dividends of $950,000. On the consolidated financial statements for 2023, what amount should have been shown in consolidated dividends? A. $1,100,00 B. $950,000 C. $0 D. $160,000 E. $922,000
Scott company paid $2,800,000 yo acquire all of the common stock of dawn corporation on January 1, 2023. dawn's reported earnings for 20230 totaled %512,000 and it paid $160,000 in dividends during the year. the amortization of allocations related to the investment was $28,000. Scott's net income, not including the investment, was $3,310,000 and it paid dividends of $950,000. On the consolidated financial statements for 2023, what amount should have been shown in consolidated dividends? A. $1,100,00 B. $950,000 C. $0 D. $160,000 E. $922,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Scott company paid $2,800,000 yo acquire all of the common stock of dawn corporation on January 1, 2023. dawn's reported earnings for 20230 totaled %512,000 and it paid $160,000 in dividends during the year. the amortization of allocations related to the investment was $28,000. Scott's net income, not including the investment, was $3,310,000 and it paid dividends of $950,000. On the consolidated financial statements for 2023, what amount should have been shown in consolidated dividends? A. $1,100,00 B. $950,000 C. $0 D. $160,000 E. $922,000
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