If a dividend is received from pre-acquisition earnings of an investee, how would this dividend be treated

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If a dividend is received from pre-acquisition earnings of an investee, how would this dividend be treated if:

a. The cost method is used by the investor?

b. The fair value method is used by the investor?

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Financial Accounting

ISBN: 9781743767382

9th Edition

Authors: Craig Deegan

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Question Posted: Sep 15, 2023 08:17 AM

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If a dividend is received from pre-acquisition earnings of an investee, how would this dividend be treated

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a Dividends paid by an investee which are sourced from preacquisition profits of the investee are a ...View the full answer

Financial Accounting

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