Zwick Company bought 28,000 shares of the voting common stock of Handy Corporation in January 2018....

Zwick Company bought 28,000 shares of the voting common stock of Handy Corporation in January 2018. In December, Handy announced $200,000 net income for 2018 and declared and paid a cash dividend of $2 per share on all 200,000 shares of its outstanding common stock. Zwick Company's dividend revenue from Handy Corporation in December 2018 would be:

Muliple Choice

$28,000
$0
None of these answer choices are comect
$6,000

Solutions

Expert Solution

Option D

Dividend revenue

= Shares held by Zwick Corporation * Dividends issued per share

= 28,000 * 2 per share

= 56,000

ekkarill92 answered 2 years ago

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