Question
Parent company acquired 100% of voting rights common stock of subsidiary paying SR 500 Cash. Sub. Net income SR 100, dividends declared SR 50. What
Parent company acquired 100% of voting rights common stock of subsidiary paying SR 500 Cash. Sub. Net income SR 100, dividends declared SR 50. What is the journal entry parent passes using cost method?
a.
Dr. Investment account 100, Cr. income from subsidiary 100
b.
Dr. Dividends receivable 50, Cr. Investment account 50.
c.
Dr. income from subsidiary 100, Cr. Investment account 100
d.
Dr. Dividends receivable 50, Cr. income from subsidiary 50
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Accounting In A Nutshell Accounting For The Non-specialist
Authors: Walker, Janet
3rd Edition
075068738X, 9780750687386
