McKay Ltd is a parent entity of Shephard Ltd, a wholly owned subsidiary. Which of the following statements is true of the dividends reported in McKay Ltd's consolidated statement of financial position?

Group of answer choices

Only intra-group dividends received from Shephard Ltd would be reported.

Only those paid by McKay Ltd to external shareholders would be reported.

Dividends paid by both McKay Ltd and Shephard Ltd would be reported.

Dividends received from Shephard Ltd would be adjusted from the dividends paid by McKay Ltd and the balance amount would be reported.