ADVANCED FIN. ACCT. LL W/ACCESS>CUSTOM<
ADVANCED FIN. ACCT. LL W/ACCESS>CUSTOM<
12th Edition
ISBN: 9781265074623
Author: Christensen
Publisher: MCG CUSTOM
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Chapter 9, Problem 9.4E

a.

To determine

Introduction: Consolidation is the process of combining financial results of various subsidiaries with the financial results of parent company. It is used only when parent company holds more than 50% of share of subsidiary company.Dividend is the part of profit of the company which company distributes it to its shareholders such as equity shareholders and preference shareholders. It is the expense of company and is eliminated from the retained earnings of the company.

The percent of dividends paid by S company to be shown in consolidated financial statements.

b.

To determine

Introduction: Consolidation is the process of combining financial results of various subsidiaries with the financial results of parent company. It is used only when parent company holds more than 50% of share of subsidiary company.Dividend is the part of profit of the company which company distributes it to its shareholders such as equity shareholders and preference shareholders. It is the expense of company and is eliminated from the retained earnings of the company.

The percent of dividends paid by P company to be shown in consolidated retained earnings.

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