At the Date of Acquisition, a Subsidiary Had Recorded a Dividend

Multiple Choice

At the date of acquisition, a subsidiary had recorded a dividend payable of $100 000. Assuming that the shares were acquired on a cum. div basis, the consolidation adjustment needed at the date of acquisition to eliminate the dividend is:

A) DR Dividend payable $100 000 CR Dividend receivable $100 000
B) DR Dividend revenue $100 000 CR Dividend declared $100 000
C) DR Shares in subsidiary $100 000 CR Dividend receivable $100 000
D) DR Dividend receivable $100 000 CR Dividend payable $100 000