Question: Wendy Day Kite Company owns 40 of the outstanding stock

Wendy Day Kite Company owns 40% of the outstanding stock of Strong String Company. During the current year, Strong String paid a $10 million cash dividend on its common shares. What effect does Strong String’s dividend have on Wendy Day’s financial statements? Explain the reasoning for this effect.


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  • CreatedJuly 15, 2014
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