Question
A 70%-owned subsidiary declares and pays a cash dividend. What effect does the dividend have on retained earnings and noncontrolling interest in the consolidated balance
A 70%-owned subsidiary declares and pays a cash dividend. What effect does the dividend have on retained earnings and noncontrolling interest in the consolidated balance sheet?
| Decrease in retained earnings and no effect on noncontrolling interest. | ||
| No effect on retained earnings and a decrease in the noncontrolling interest. | ||
| Decreases both retained earnings and noncontrolling interest. | ||
| No effect on either retained earnings or the noncontrolling interest. |
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Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
7th Edition
978-0470477151, 978-0-470-5562, 470556242, 0-470-55624-2, 9780470556245, 978-0470507018
