Liquidating dividends effect on retained earnings
Increase depreciation expense and recognize goodwill amortization c.
Decrease depreciation expense and recognize no goodwill amortization d.
Dividends may take several forms: payments of cash, distribution of additional equity shares, distribution of the corporation's property or other forms including equity ownership in a subsidiary company. Increase depreciation expense and recognize no goodwill amortization 6.How is the portion of consolidated earnings to be assigned to the noncontrolling interest in consolidated financial statements determined? The parent's net income is subtracted from the subsidiary's net income to determine the noncontrolling interest b.On a consolidated balance sheet at December 31, 20x9, the carrying amount of the equipment should be reported at: a. In the consolidated income statement, Salem's recorded depreciation expense on the equipment for 20x2 will be decreased by: a.20 percent of the gain on the sale b.33 1/3 percent of the gain on the sale c.50 percent of the gain on the sale d.100 percent of the gain on the sale 3.
On January 1, 20x2, Port sold delivery equipment to Salem at a gain.The amount of consolidated earnings on the consolidated workpapers is multiplied by the noncontrolling interest percentage on the balance sheet date 7.