Accounting for liquidating dividend Boy and girl sex dating video
A dividend which is a return of capital to the shareholder.
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Based in Greenville SC, Eric Bank has been writing business-related articles since 1985.
When the subsidiary pays a dividend, the parent company reduces its investment in the subsidiary by the dividend amount.
To do so, the parent company enters a debit to the dividends receivable account and a credit to the investment in subsidiary account on the business day after the record date.
331 when they receive the liquidation proceeds in exchange for their stock.
If the corporation distributes its assets for later sale by the shareholders, the assets generally “come out” of the corporation with a basis equal to FMV (and with the related recognition of gain or loss under Sec.