REFERENCE: Ref.03_03 Cashen Co.paid $2,400,000 to Acquire All of the Common Stock

question 29

Multiple Choice

REFERENCE: Ref.03_03
Cashen Co.paid $2,400,000 to acquire all of the common stock of Janex Corp.on January 1,2009.Janex's reported earnings for 2009 totaled $432,000,and it paid $120,000 in dividends during the year.The amortization of allocations related to the investment was $24,000.Cashen's net income,not including the investment,was $3,180,000,and it paid dividends of $900,000.
-On the consolidated financial statements,what amount should have been shown for consolidated dividends?

• A)$900,000.
• B)$1,020,000.
• C)$876,000.
• D)$996,000.
• E)$948,000.

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Definitions:

Reward Salience

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The emotional state or prevailing feeling often experienced during adolescence, marked by rapid emotional changes and sensitivity.

Transition

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