Question
Assume that a parent Corporation had appropriately accounted for the December 31, 2020, business combination with its wholly owned subsidiary and that subsidiary had a
Assume that a parent Corporation had appropriately accounted for the December 31, 2020, business combination with its wholly owned subsidiary and that subsidiary had a net income of $80,000 for the year ended December 31, 2021, Assume further that on December 20, 2021, subsidiarys board of directors declared a cash dividend of $0.60 a share on the 50,000 outstanding shares of common stock owned by Parent. subsidiarys journal entry to record the dividend declaration is:
a. Intercompany Dividends Payable credit $20,000 and cash credit $20,000.
b. Dividends Declared debit $ 20,000 and Intercompany Dividends Payable credit $20,000.
c. Dividends Declared debit $ 20,000 and Intercompany Dividends Payable credit $20,000.
d. Dividends Declared debit $ 30,000 and Intercompany Dividends Payable credit $30,000.
On November 10, 2020, Maher, Saher, and Taher, partners of Maher, Saher, & Taher LLP, shared net income and losses in a 4 : 2 : 1 ratio respectively. In liquidation of the LLP, the Capital per unit of income sharing ratio were: $10,000, $12,000, $15,000 respectively. The capital balance of Taher before liquidation was:
a. $15,000.
b. $40,000.
c. $24,000.
d. $37,000.
Please please, I don't have enough time, help me
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