A subsidiary that is 75% owned by its parent company pays a dividend of $100 000.On consolidation the amount to be eliminated is:
A) $75 000.
B) $100 000.
C) $25 000.
D) not eliminated.

Name: A subsidiary that is 75% owned by its parent company pays a dividend of $100 000.On consolidation the amount to be eliminated is: A) $75 000. B) $100 000. C) $25 000. D) not eliminated.
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

Quizplus · Accepted Answer

The amount to be eliminated is 75% of the dividend, which is $75,000.

A Subsidiary That Is 75% Owned by Its Parent Company