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On January 2, Year 1, Pool Co. acquired 75% of Kale Co.'s outstanding common stock....

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Accounting

On January 2, Year 1, Pool Co. acquired 75% of Kale Co.'s outstanding common stock. The balance sheet data at December 31, 20x1, show retained earnings of $200,000 per company. During 20x1, Pool and Kale paid cash dividends of $25,000 and $5,000, respectively, to their shareholders. There were no other intercompany transactions. In its December 31, 20x1, consolidated statement of retained earnings, which amount should Pool report as dividends paid?

$5,000 $25,000 $26,250 $30,000

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