Solution-What effect will olivia llcs earnings and dividend

What effect will olivia llcs earnings and dividend have

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Question - Alexa & Co. holds 40% of the total common shares outstanding of Olivia LLC. During the current year, Olivia LLC declares and pays a $100,000 cash dividend on its common shares and reports net income of $500,000. What effect will Olivia LLC's earnings and dividend have on Alexa Co's financial statements? Note that Alexa & Co has not elected the fair value option for this investment.

a) Increases $40,000, Increases $160,000, Increases $160,000

b) Increases $100,000, Increases $240,000, Increases $100,000

c) Increases $240,000, Increases $200,000, Increases $240,000

d) Increases $40,000, Increases $160,000, Increases $200,000

Reference no: EM132844260

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What effect will olivia llcs earnings and dividend have

Reference no: EM132844260

Reference no: EM132844260

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