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_____ Dividends Declared by a Subsidiary as Shown in Its

Question 58

Multiple Choice

_____ Dividends declared by a subsidiary as shown in its analysis of retained earnings on the consolidation worksheet are


A) Added to the dividends declared by the parent in arriving at dividends declared to be reported in the consolidated analysis of retained earnings.
B) Eliminated in consolidation only if the parent uses the equity method.
C) Eliminated in consolidation only if the parent uses the cost method.
D) Eliminated in consolidation regardless of whether the parent uses the equity method or the cost method.

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