10. How does P handle a stock dividend from S?

a. With a memorandum entry only

b. With a debit to investment in S

c. With a credit to investment in S

d. With a credit to retained earnings

11. What is a liquidating dividend?

a. S pays dividends from income since acquisition

b. P pays dividends from consolidated income

c. S pays dividends from preacquisition income

d. P pays dividends from preacquisition income

12. How does Ss preferred stock affect the consolidation?

a. Any preferred stock not held by P must be included in noncontrolling interest

b. Ps % of ownership does not include preferred if the preferred doesnt have voting rights

c. Preferred stock will share in Ss total equity

d. All of these.