Jane Co. owns 90% of the common stock of Dun Corp. and 100% of the common stock of Beech Corp. On December 30, Dun and Beech each declared a cash dividend of $100,000 for the current year. What is the total amount of dividends that should be reported in the December 31 consolidated financial statements of Jane and its subsidiaries, Dun and Beech?
a. $10,000 b. $100,000 c. $190,000 d. $200,000
I understand. This question, just had a question on a couple variations.
1. Assume original percentages and the instead of dividends, Dun and Beech had net income of the same amounts. Would net income reported on consolidated financials be 10,000
2. Assume original facts. Jane issued dividends of 10,000. Would total dividends on consolidated statements be 20,000
3. Assume the percentages were 40% for each, they wouldn't consolidate right? Then what would be the impact?
This is one of my weaker areas and I'm trying to get everything straightened out
Thanks