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QUESTION 29 Warren Buffett Inc. paid $2,400,000 to acquire all of the common stock of Amazon Corp. on January 1, 2017. Amazon
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Answer #1

Answer is Option C ------> $ 900000

Explanation :

Under the consolidated statements each and every assets and liabiilities shall be clubbed with the subsidiary and be reported accordingly. But in case of dividend it shall be reported only which the amount has been paid by the holding company to its shareholders and shall not be clubbed or adjusted of the subsidiary company.

Dividend is a item of Reserve and Surplus , and shall be reported only of holding company part and no inter company adjustments shall be made. Dividend paid by subsidiary has been received by holding company , since under consolidated statements one company has paid and another has received the dividends , hence no adjustments relating to the dividend has been required.

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