bleach

So… the dividend doesn’t go into P’s I/S?
Just to clarify. On Schweser Book 2 page 17 it gives the above example. It explains it as:
“At the end of 20X6, the carrying value of Company S on Company P’s balance shet will be $1,090 (1,000 original investment + 120 proportionate share of Company S net income - 30 dividend received).”
When it says “carrying value” does it mean the entry of “Investments in Assets” in P’s B/S? Or P’s balance sheet as a whole. If it means balance sheet as a whole then the $30 dividend received will, like what idreesz said, increase the cash account by 30 thereby ending the balance sheet with 1,120.
So I guess furthering my question is that what do they mean when they say “carrying value” b/c a lot of problems will ask “what is the value of XYZ Parent’s balance sheet from its investment in Sub ZYX at the end of 20X0” If they don’t mean specifically the Investment in Company entry, then the balance sheet would be 1,120 and not 1,090. Right?