When a Dividend Declared by a Subsidiary Results in an Adjustment

question 4

Multiple Choice

When a dividend declared by a subsidiary results in an adjustment for impairment of the parent company investment in subsidiary asset,the following consolidation worksheet adjustment is required:

• A) DR Impairment loss Investment in Subsidiary CR Accum. Impairment Loss
• B) DR Accum Impairment Loss CR Impairment Loss Investment in Subsidiary
• C) DR Impairment Loss Investment in Subsidiary CR Investment in Subsidiary
• D) none of the above