At the Beginning of 2011,Parling Food Services Acquired a 90

question 35

Multiple Choice

At the beginning of 2011,Parling Food Services acquired a 90% interest in Simmons' Orchards when Simmons' book values of identifiable net assets equaled their fair values.On December 26,2011,Simmons declared dividends of $50,000,and the dividends were unpaid at year-end.Parling had not recorded the dividend receivable at December 31.A consolidated working paper entry is necessary to

• A)enter $50,000 dividends receivable in the consolidated balance sheet.
• B)enter $45,000 dividends receivable in the consolidated balance sheet.
• C)reduce the dividends payable account by $45,000 in the consolidated balance sheet.
• D)eliminate the dividend payable account from the consolidated balance sheet.

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Definitions:

Solving Practical Problems

This refers to the process of finding solutions to real-world issues or challenges through the application of relevant skills and knowledge.

Acquisitive Stage

A stage of cognitive development where individuals are primarily concerned with acquiring knowledge and skills.

Reorganizational Stage

A phase of adjustment where systems, organizations, or individuals restructure or reorient to adapt to changes or improvements.

Responsible Stage

A concept in developmental psychology where individuals learn to take accountability for their actions and understand their societal roles.