At the beginning of 2014,Parling Food Services acquired a 90% interest in Simmons' Orchards when Simmons' book values of identifiable net assets equaled their fair values.On December 26,2014,Simmons declared dividends of $50,000,and the dividends were unpaid at year-end.Parling had not recorded the dividend receivable at December 31.A consolidated working paper entry is necessary to
A)enter $50,000 dividends receivable in the consolidated balance sheet.
B)enter $45,000 dividends receivable in the consolidated balance sheet.
C)reduce the dividends payable account by $45,000 in the consolidated balance sheet.
D)eliminate the dividend payable account from the consolidated balance sheet.

Question

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The Answer of At the beginning of 2014,Parling Food Services acquired a 90% interest in Simmons' Orchards when Simmons' book values of identifiable net assets equaled their fair values.On December 26,2014,Simmons declared dividends of $50,000,and the dividends were unpaid at year-end.Parling had not recorded the dividend receivable at December 31.A consolidated working paper entry is necessary to
A)enter $50,000 dividends receivable in the consolidated balance sheet.
B)enter $45,000 dividends receivable in the consolidated balance sheet.
C)reduce the dividends payable account by $45,000 in the consolidated balance sheet.
D)eliminate the dividend payable account from the consolidated balance sheet.

At the Beginning of 2014,Parling Food Services Acquired a 90