Multiple Choice
Kayla Ltd. owns 100% of Milos Ltd. Kayla records its investment at cost. Kayla received $300,000 in dividends from Milos. What adjustment should Kayla make on its consolidated financial statements with respect to the dividends?
A) Decrease Dividend income (Kayla) : $300,000
Decrease Dividends declared (Milos) : $300,000
B) Increase Dividend income (Kayla) : $300,000
Increase Dividends declared (Milos) : $300,000
C) Decrease Dividends declared (Milos) : $300,000
Decrease Investment in Milos (Kayla) : $300,000
D) Increase Dividends declared (Milos) : $300,000
Increase Investment in Milos (Kayla) : $300,000
Correct Answer:
Verified
Correct Answer:
Verified
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