Question

Zwick company bought 28,000 shares of the voting common stock of handy corporation in january 2018. in december, handy announced $207,400 net income for 2018 and declared and paid a cash dividend of $10 per share on all 209,500 shares of its outstanding common stock. zwick company's dividend revenue from handy corporation in december 2018 would be:

Answer 1

Zwick company's dividend revenue from Handy corporation in December 2018 would be = $280,000

Step-by-step explanation:

Since Zwick company has bought 28,000 shares of Handy Corp. and Handy has announced a cash dividend of $10 per share. We will calculate Zwick company's dividend revenue would be,

Dividend revenue = ownership shares x dividend per share

Dividend revenue = 28,000 shares x $10 per share = $280,000