Turner Company owns 40 of the outstanding stock of ICA Company During the current year, ICA paid a $5 million cash dividend on its common shares What effect did this dividend have on Turner 's 2011 financial statements Explain the reasoning for this effect ...

An investor should account for dividends from an equity metho ...

Turner Company owns 40% of the outstanding stock of ICA Company. During the current year, ICA paid

Question:

Turner Company owns 40% of the outstanding stock of ICA Company. During the current year, ICA paid a $5 million cash on its common shares. What effect did this have on Turner's 2011 financial statements? Explain the reasoning for this effect.

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...