For Ownership Interest of Less Than 20%, the Parent May

question 23

Multiple Choice

For ownership interest of less than 20%, the parent may exclude how much of the dividends received from its reported income when filing separately?

• A)​100%
• B)​80%
• C)​70%
• D)​20%

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Definitions:

Outstanding Stock

Refers to the total shares of a company that are currently owned by investors, including those held by institutional investors and company officials.

Earnings Per Share

The profit of a company divided by its total number of common stock shares outstanding, showing how profitable the company is.

Unlevered Cost

The cost of an investment or project without the consideration of financing costs, such as interest expenses, providing a view of its profitability solely based on its operations.