Company A owns 60% and controls Company B, which pays a dividend of $1 million of which Company A receives $600 000.Because intra-group transactions are eliminated in full, the whole $1 million dividend is eliminated from consolidated amounts of dividend revenue.

Question

Quizplus · Accepted Answer

Only the portion of the dividend paid to Company A ($600,000) is eliminated from consolidated amounts of dividend revenue, not the entire $1 million.

Company a Owns 60% and Controls Company B, Which Pays