Cashen Co. paid $2,400,000 to purchase all of the common stock of Janex Corp. on January 1, 2001. Janex's reported earnings for 2003 totaled $432,000, and it paid $120,000 in dividends during the year. The amortization of allocations related to the investment was $24,000. Cashen's net income, not including the investment, was $3,180,000, and it paid dividends of $900,000.
24. On the consolidated financial statements, what amount should have been shown for Consolidated Dividends?
A) $ 900,000
C) $ 876,000
D) $ 996,000
E) $ 948,000
25. What is the amount of Consolidated Net Income?
(23) Janex (subsidiary) reported net income of $432,000, and it paid $120,000 in dividends during the year. Hence, Janex's retained earnings = 432,000 - 120,000 = ...
The solution answers questions on the financial statements for Cashen Co. and Janex Corp.