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a) The company has an investment in shares in company "Z", S

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a) The company has an investment in shares in company "Z", S.A. de C.V., which represents 95% of the capital stock of company "Z", and recognized in the income statement a dividend of 8 million paid by its subsidiary without affecting the permanent investment in shares, which means that the profit of the year is overvalued by that amount and must be corrected, which will cause the result of the year and stockholders' equity to decrease by that same amount. b) Company "Z" generated a profit of $3,875,000 at the end of the fiscal year and the company has not registered the participation method.