Penrose Corporation acquired 80% of the voting stock of Speedy Company several years ago. There...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Penrose Corporation acquired 80% of the voting stock of Speedy Company several years ago. There were no revaluations of Speedy's identifiable net assets, and the excess of acquisition cost over Speedy's book value was attributed entirely to goodwill.
Some information for 2021:
1. Consolidated depreciation expense was $400, and the goodwill impairment loss was $30.
2. Plant assets with an original cost of $300 were sold for $20.
3. Penrose declared and paid $50 in cash dividends.
4. Speedy declared and paid $10 in cash dividends.
On the consolidated statement of cash flows for 2021, total cash dividends paid is:
A)
$50
B)
$52
C)
$10
D)
$40
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
