Coral Ltd Owns 100% of Ambrose Ltd B) C) D)

Multiple Choice

Coral Ltd. owns 100% of Ambrose Ltd. Coral uses the cost method to record this subsidiary. Coral received $150,000 in dividends from Ambrose. What journal entry should Coral make on its consolidation worksheet with respect to the dividends?

A) $$\begin{array} { | c | c | } \hline \text { DR Dividends declared (Ambrose) } & 150,000 \\\hline \text { CR Dividend income (Coral) } & 150,000 \\\hline\end{array}$$
B) $$\begin{array} { | c | c | } \hline \text { DR Dividends declared (Ambrose) } & 150,000 \\\hline \text { CR Investment in Ambrose (Coral) } & 150,000 \\\hline\end{array}$$
C) $$\begin{array} { | c | c | } \hline \text { DR Dividend income (Coral) } & 150,000 \\\hline \text { CR Dividends declared (Ambrose) } & 150,000 \\\hline\end{array}$$
D) $$\begin{array} { | c | c | } \hline \text { DR Investment in Ambrose (Coral) } & 150,000 \\\hline \text { CR Dividends declared (Ambrose) } & 150,000 \\\hline\end{array}$$