Question
Alpha Company owns 30% of the outstanding common stock of Bravo Company. During the year, Bravo Company reports net income of $150,000 and pays
Alpha Company owns 30% of the outstanding common stock of Bravo Company. During the year, Bravo Company reports net income of $150,000 and pays dividends of $50,000. When the consolidated statement of cash flows is prepared, Alpha will reduce operating income by what amount due to the "undistributed subsidiary income"? $30,000 $50,000 $100,000 $150,000
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