Preacquisition dividends are dividends paid on stock by the subsidiary before the date of acquisition by the parent.

Name: Preacquisition dividends are dividends paid on stock by the subsidiary before the date of acquisition by the parent.
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Preacquisition dividends are dividends paid by the subsidiary before becoming part of the parent company through acquisition. These dividends are recognized as a reduction in the cost of the investment rather than revenue.

Preacquisition Dividends Are Dividends Paid on Stock by the Subsidiary