At the date of acquisition, a subsidiary had recorded a dividend payable of $100 000. Assuming that the shares were acquired on a cum div. basis, the consolidation adjustment needed at the date of acquisition to eliminate the dividend is:

A) I.
B) II.
C) III.
D) IV.

Question

At the date of acquisition, a subsidiary had recorded a dividend payable of $100 000. Assuming that the shares were acquired on a cum div. basis, the consolidation adjustment needed at the date of acquisition to eliminate the dividend is:

A) I. 
B) II. 
C) III. 
D) IV.

Quizplus · Accepted Answer

The Answer of At the date of acquisition, a subsidiary had recorded a dividend payable of $100 000. Assuming that the shares were acquired on a cum div. basis, the consolidation adjustment needed at the date of acquisition to eliminate the dividend is:

A) I. 
B) II. 
C) III. 
D) IV.

At the Date of Acquisition, a Subsidiary Had Recorded a Dividend