Question

Zwick Company bought 25,000 shares of the voting common stock of Handy Corporation in January 2021. In December, Handy announced $200,200 net income for 2021 and declared and paid a cash dividend of $3.00 per share on all 201,000 shares of its outstanding common stock. Zwick Company's dividend revenue from Handy Corporation in December 2021 would be:

Answer 1

$75,000

Step-by-step explanation:

Calculation for what the 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 x $3.00 per share

Dividend revenue = $75,000

Therefore what the Company's dividend revenue from Handy Corporation in December 2021 would be is $75,000