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Where a Subsidiary Has Declared but Not Paid a Dividend

Question 11

Multiple Choice

Where a subsidiary has declared but not paid a dividend on a cum-dividend basis on acquisition date,the amount of the dividend must be recorded by the parent company as:


A) revenue.
B) a reduction in the cost of the investment.
C) a reduction in the amount of goodwill on consolidation.
D) none of the above,

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