Corporations receiving dividends from other corporations account for such dividends for GAAP purposes the following ways at the various ownership percentages.

Drag and drop application.

Owns less than $20$ percent

Owns less than $20$ percent drop zone empty.

Owns at least $20$ percent but not more than $50$ percent

Owns at least $20$ percent but not more than $50$ percent drop zone empty.

Owns more than $50$ percent

Owns more than $50$ percent drop zone empty.

Includes a pro$-$rata portion of the distributing corporation's earnings in its book income under the "equity method of accounting"

Includes the dividend in income $($same as tax; no book$-$tax differences$)$ and includes the unrealized gain or loss on the stock in its book income

Consolidates their financial reporting books and the intercompany dividend is eliminated