Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

acquired 60% of Ben Company for $700,000 in cash. On the date of the acquisition, the book value of net assets of Ben company were

acquired 60% of Ben Company for $700,000 in cash. On the date of the acquisition, the book value of net assets of Ben company were as follows: Cash $100,000 Inventory 200,000 Building, Net 500,000 Liabilities (150,000) Net Assets $650,000 During the year, Ben paid total dividends of $80,000, and Abba paid total dividends of $120,000. How these dividends should be reported on the Consolidated Statement of Cash-Flow?

As $200,000 cash outflow from financing activities

As $120,000 cash outflow from financing activities

As $184,000 cash outflow from financing activities

As $152,000 cash outflow from financing activities

These dividends are intra-companies dividends and should not be reported on the Consolidated Statement of Cash-Flow.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

2. What are implementation intentions?

Answered: 1 week ago