A 70% owned entity declares and pays cash dividend. What effect does the dividend have on the retained earnings and minority interest balance in the consolidated balance sheet? A. No effect on retained earnings and decrease on minority interest B. Decrease both retained earnings and minority interest C. Increase on retained earnings and decrease on minority interest D. No effect on either retained earnings or minority interest

Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter13: Corporations: Organization, Stock Transactions, And Dividends
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Problem 12E
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A 70% owned entity declares and pays cash dividend. What effect does the dividend have on the retained earnings and minority interest balance in the consolidated balance sheet?

A. No effect on retained earnings and decrease on minority interest
B. Decrease both retained earnings and minority interest
C. Increase on retained earnings and decrease on minority interest
D. No effect on either retained earnings or minority interest
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