Question: A parent company uses the partial equity method to account for an investment in common stock of its subsidiary. A portion of the dividends received

A parent company uses the partial equity method to account for an investment in common stock of its subsidiary. A portion of the dividends received this year were in excess of the parent companys share of the subsidiarys earnings subsequent to the date of the investment. The amount of dividend income that should be reported in the parent companys separate income statement should be

Select one:

a. the portion of the dividends received this year that were NOT in excess of the parents share of subsidiarys earnings subsequent to the date of investment.

b. the total amount of dividends received this year.

c. zero.

d. the portion of the dividends received this year that were in excess of the parents share of subsidiarys earnings subsequent to the date of investment.

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