Question
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. |
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