Question

Zwick Company bought 25,000 shares of the voting common stock of Handy Corporation in January 2021. In December, Handy announced $208,100 net income for 2021 and declared and paid a cash dividend of $5.00 per share on all 208,000 shares of its outstanding common stock. Zwick Company's dividend revenue from Handy Corporation in December 2021 would be:

Answer 1

$125,000

Step-by-step explanation:

Calculation for what Zwick Company's dividend revenue from Handy Corporation in December 2021 would be

Using this formula

Dividend revenue= Voting common stock shares *Cash dividend per share

Let plug in the formula

Dividend revenue=25,000 shares*$5.00 per share

Dividend revenue=$125,000

Therefore Zwick Company's dividend revenue from Handy Corporation in December 2021 would be $125,000

Answer 2

$125,000

Step-by-step explanation:

Zwick company bought 25,000 shares of Handy corporation

In 2021 Handy corporation reported $208,100 net income

The cash dividend reported is $5.00 per share on all its 208,000 shares

Therefore the Zwicks company dividend revenue from Handy corporation in December 2021 can be calculated as follows

= 25,000 shares × $5.00

= 125,000

Hence Zwick's dividend revenue from Handy corporation is $125,000