When a Dividend Declared by a Subsidiary Results in an Adjustment

question 6

Multiple Choice

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

• A) Dr. Impairment loss Investment in Subsidiary Cr. Accumulated Impairment Loss
• B) Dr. Accumulated Impairment Loss Cr. Impairment Loss Investment in Subsidiary
• C) Dr. Impairment Loss Investment in Subsidiary Cr. Investment in Subsidiary
• D) none of the above.

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Definitions:

Neuroticism

A quality inherent to an individual’s personality, manifesting as volatility in emotions, anxiety, tendency toward mood changes, anxious thoughts, and sorrow.

Agreeableness

A personality trait characterized by attributes such as kindness, warmth, and cooperation, reflecting how harmoniously people interact with others.

Evolutionarily Adaptive

Traits or behaviors that have been favored by natural selection because they increase the reproductive success or survival of an organism.

Minnesota Nice

A cultural stereotype referring to the polite, reserved, and mild-mannered nature of people from the state of Minnesota.