When a Subsidiary Declares a Final Dividend Payable to a Parent

When a subsidiary declares a final dividend payable to a parent who has a 100% interest in the subsidiary, the parent recognises a dividend receivable and the subsidiary recognises a dividend payable. In addition to the elimination of these two items on consolidation, the following items must also be eliminated:

A) Dividend revenue and Cash.
B) Dividend declared and Cash.
C) Dividend declared and Dividend revenue.
D) Dividend declared and Retained earnings.

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