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A 70%-owned subsidiary declares and pays a cash dividend. What effect does the dividend have on the retained earnings and noncontrolling interest balances in the parent's consolidated balance sheet?
A. No effect on retained earnings and a decrease in noncontrolling interest.
B. No effect on either retained earnings or noncontrolling interest.
C. Decreases in both retained earnings and noncontrolling interest.
D. A decrease in retained earnings and no effect on noncontrolling interest.
Answer: A
Explanation:
The parent's investment in subsidiary account and its proportionate share of the subsidiary's equity accounts, which include retained earnings, are eliminated in a consolidation. The remainder of the subsidiary's equity is reported separately as the noncontrolling interest. Thus, consolidated retained earnings is essentially the parent's retained earnings at year-end The subsidiary's cash dividend reduces its retained earnings balance and therefore the noncontrolling interest but not the parent's retained earnings.

NEW QUESTION: 2
次の図に示すように、Policy1という名前のRecovery Servicesボルトバックアップポリシーを作成します。


Answer:
Explanation:


NEW QUESTION: 3
Refer to the exhibit. Which of these best describes the question mark?

A. local area network
B. multiservice Ethernet ring
C. Token Ring network
D. IEC 61850 station bus
Answer: D


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