Big owns 70% of Little and uses the equity method to account for its investment in Little. In 2020, Big reports Dividends of $800,000. Little reports Dividends of $300,000. For what amount is worksheet entry “D” (Dr. Investment. Cr. Dividends Paid) prepared for? As an addition to consolidated net income As a deduction from consolidated net income As an addition to Spray's dividends As a deduction from Spray's dividends
Big owns 70% of Little and uses the equity method to account for its investment in Little. In 2020, Big reports Dividends of $800,000. Little reports Dividends of $300,000. For what amount is worksheet entry “D” (Dr. Investment. Cr. Dividends Paid) prepared for? As an addition to consolidated net income As a deduction from consolidated net income As an addition to Spray's dividends As a deduction from Spray's dividends
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 33P
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Big owns 70% of Little and uses the equity method to account for its investment in Little. In 2020, Big reports Dividends of $800,000. Little reports Dividends of $300,000. For what amount is worksheet entry “D” (Dr. Investment. Cr. Dividends Paid) prepared for?
As an addition to consolidated net income
As a deduction from consolidated net income
As an addition to Spray's dividends
As a deduction from Spray's dividends
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