X Corporation owns 80 percent of Y Corporation's common stock and 40 percent of Z Corporation's common stock. Additionally, Y Corporation owns 35 percent of Z Corporation's common stock. The acquisitions were made at book values. The following information is available for 20X8: Based on the information provided, what amount will be reported as dividends declared in X Corporation's 20X8 consolidated retained earnings statement?

Question

X Corporation owns 80 percent of Y Corporation's common stock and 40 percent of Z Corporation's common stock. Additionally, Y Corporation owns 35 percent of Z Corporation's common stock. The acquisitions were made at book values. The following information is available for 20X8:  Based on the information provided, what amount will be reported as dividends declared in X Corporation's 20X8 consolidated retained earnings statement?

Quizplus · Accepted Answer

The Answer of X Corporation owns 80 percent of Y Corporation's common stock and 40 percent of Z Corporation's common stock. Additionally, Y Corporation owns 35 percent of Z Corporation's common stock. The acquisitions were made at book values. The following information is available for 20X8:  Based on the information provided, what amount will be reported as dividends declared in X Corporation's 20X8 consolidated retained earnings statement?

X Corporation Owns 80 Percent of Y Corporation's Common Stock