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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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As of December 31, 2020, the separate company financial statements of Drao co and Its 80% owned subsidiary, Lesa Co, has a related balance with dividends as follows:
Dividend 2020 |
Drao co CU600.000.000 |
Lesa Co CU400.000.000 |
Requested:
1, What is the dividend value that will appear in the consolidated Retained Earnings statement?
2, How much dividend payable will appear on the Consolidated
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- Company P acquired 90 percent of the common stock of Company S on 1/1/2020. During 2020, Company S reported a net income of $50,000 and dividends of $12,000. Company P uses the simple equity method to account for the investment in S. Which of the following entries is prepared by Company P when consolidating the financial statements for 2020? Debit Subsidiary Income $45,000, Credit Investment in S $45,000 Debit Investment in S $45,000, Credit Subsidiary Income $45,000 Debit Dividends Receivable $10,800, Credit Subsidiary Income $10,800 Debit Subsidiary Income $10,800, Credit Dividends Declared $10,800arrow_forwardOn 1/1/2022, P Co acquired 90% of S Co stock at an amount equal to its book value.Selected balance sheet data at 1/1/ 2022, are as follows: P CO S Co Total Assets 180,000 Liabilities 60,000 Common Stock 50,000 Select one: Retained Earnings 200,000 70,000 O 420,000 In the 1/1/2022, consolidated balance sheet, what amount should be reported as non-controlling interest in net assets? a. 12,000 b. 10,500 120,000 c. 0 d. 30,000 100,000arrow_forwardon 1/1/2019 X CO acquired 80% of Y common stock for $150,000 in the same day the y net assets was $ 140,000 , in the same date the fair value of assets and liabilities were equal .year ended 31/12/2019 y reported income $50,000 , declared dividend $30,000 , X using equity methods what is good will balance on 1/1/2019 Select one: a. 10,000 b. 47,500 c. 37,500 d. 50,000 Previous page Next pag W to search hparrow_forward
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