The following comment appeared in the notes of Colorado Corporations annual report: Such distributions, representing proceeds from the sale of Sarazan, Inc. were paid in the form of partial liquidating dividends and were in lieu of a portion of the Companys ordinary cash dividends. How would a partial liquidating dividend be accounted for in the financial records?

The following comment appeared in the notes of Colorado Corporation’s annual report: “Such distributions, representing proceeds from the sale of Sarazan, Inc. were paid in the form of partial liquidating dividends and were in lieu of a portion of the Company’s ordinary cash dividends.” How would a partial liquidating dividend be accounted for in the financial records?

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...

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Intermediate Accounting

13th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield

ISBN: 978-0470423684