Quick Company Owns All of the Outstanding Shares of Peanut

question 37

Multiple Choice

Quick Company owns all of the outstanding shares of Peanut Ltd. During the year, Peanut Ltd. declared and paid a dividend of $10,000. The tax rate is 30% for both entities. In preparation for the year-end consolidated financial statements, what are the consolidated financial statement adjustments required?

• A)Decrease Dividend Revenue: $10,000, decrease Dividend Declared and Paid: $10,000, decrease Income Tax Expense: $3,000, and decrease Income Tax Payable: $3,000.
• B)Increase Dividend Revenue: $10,000, increase Dividend Declared and Paid: $10,000, increase Income Tax Expense: $3,000, and increase Income Tax Payable: $3,000.
• C)Decrease Dividend Revenue: $10,000, decrease Dividend Declared and Paid: $10,000.
• D)Increase Dividend Revenue: $10,000, increase Dividend Declared and Paid: $10,000.

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Definitions:

Revolutionary Heritage

The cultural, political, and historical legacy left by a revolution, particularly the American Revolution.

Preamble

An introductory statement in a document that explains the document's purpose and underlying philosophy.

Black Abolitionists

African American activists who campaigned against the enslavement and oppression of black people.

American Anti-Slavery Society

Founded in 1833, the organization that sought an immediate end to slavery and the establishment of equality for black Americans. It split in 1840 after disputes about the role of women within the organization and other issues.