Question
Stevie Ltd owns 100% of the issued ordinary share capital of Wright Ltd. Wright Ltd has 100 million ordinary shares on issue. During the year
Stevie Ltd owns 100% of the issued ordinary share capital of Wright Ltd. Wright Ltd has 100 million ordinary shares on issue. During the year ended 31 March 20X1, Wright Ltd declared and paid a dividend of $0.15 per share from post-acquisition profits. What is the consolidation elimination entry (if any) for this financial year? Select one: A. Accounts Debit $ Credit $ Dividend revenue 15,000,000 Dividend appropriation 15,000,000 -- B. No elimination entry is required because the dividend is a post-acquisition dividend. -- C. Accounts Debit $ Credit $ Investment in Wright Ltd. 15,000,000 Dividend appropriation 15,000,000 -- D. Accounts Debit $ Credit $ Dividend appropriation 15,000,000 Dividend revenue 15,000,000 --
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started