If $1,000,000 in dividends from subsidiary was received and dividends are taxable when received would this imply that the carrying amount is $1,000,000 and the tax base is $0.
If dividends were not taxable then carrying value=tax base=$1,000,000
Am I correct on this, or is the tax base $1,000,000 in both scenarios b/c the tax impact is at the shareholder level? I think I missing something…