On 1 January 2021, Black Ltd purchased all the shares in Beard Ltd. On 3 March 2021 Beard Ltd declared and paid a dividend of $10,000 from pre-acquisition retained earnings. The required consolidation entry on 30 June 2021 will result in: Group of answer choices An increase in retained earnings A decrease in the investment account None of the Answers A decrease in retained earnings

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
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Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...
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On 1 January 2021, Black Ltd purchased all the shares in Beard Ltd. On 3 March 2021 Beard Ltd
declared and paid a dividend of $10,000 from pre-acquisition retained earnings. The required
consolidation entry on 30 June 2021 will result in:
Group of answer choices
An increase in retained earnings
A decrease in the investment account
None of the Answers
A decrease in retained earnings
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