A Parent Company Uses the Partial Equity Method to Account

question 16

Multiple Choice

A parent company uses the partial equity method to account for an investment in common stock of its subsidiary. A portion of the dividends received this year were in excess of the parent company's share of the subsidiary's earnings subsequent to the date of the investment. The amount of dividend income that should be reported in the parent company's separate income statement should be:

• A) zero.
• B) the total amount of dividends received this year.
• C) the portion of the dividends received this year that were in excess of the parent's share of subsidiary's earnings subsequent to the date of investment.
• D) the portion of the dividends received this year that were not in excess of the parent's share of subsidiary's earnings subsequent to the date of investment.

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Definitions:

Parents Influence

The impact that parents have on their children’s development, behavior, and choices through their actions, teachings, and interactions.

Coping with Anxiety

Strategies or practices employed to manage and reduce anxiety.

Middle Childhood

A developmental stage ranging from about 6 to 12 years old, characterized by significant growth in social, cognitive, and physical areas.

Younger Child

A term typically used to refer to the child or children in a family who are younger than their siblings, focusing on their unique developmental and social positions within the family dynamics.