Superior Company owns 40 of the outstanding stock of Bernard Company During 2018, Bernard paid a $100,000 cash dividend on its common shares What effect did this dividend have on Superior 's 2018 financial statements ...

Superior Company owns 40% of the outstanding stock of Bernard Company. During 2018, Bernard paid a $100,000

Question:

Superior Company owns 40% of the outstanding stock of Bernard Company. During 2018, Bernard paid a $100,000 cash on its common shares. What effect did this have on Superior's 2018 financial statements?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...