A Ltd Holds a 60% Interest in B Ltd

question 19

Multiple Choice

A Ltd holds a 60% interest in B Ltd. On 1 January 2014 B Ltd paid an interim dividend of $25 000 and on 30 June 2014 B Ltd declared a final dividend of $15 000.
The NCI journals at 30 June 2014 will include which of the following?

• A) DR Interim dividend paid $10 000
• B) DR NCI $16 000
• C) CR Dividend receivable $6 000
• D) CR Final dividend declared $9 000

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Definitions:

Forgone Interest

The potential interest earnings lost by choosing one investment over another or by keeping money in a non-interest-bearing account.

Economic Growth

The increase in the amount of goods and services produced by an economy over time, typically measured as the percent rate of increase in real gross domestic product (GDP).

Unemployment Rate

The level of the labor force that consists of individuals who are jobless but actively seeking employment.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing to invest in one option over another.