Question

In: Accounting

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
Next > < Previous

Related Solutions

On January 1, Year 4, Handy Company (Handy) purchased 70% of the outstanding common shares of...
On January 1, Year 4, Handy Company (Handy) purchased 70% of the outstanding common shares of Dandy Limited (Dandy) for $7,000. On that date, Dandy’s shareholders’ equity consisted of common shares of $390 and retained earnings of $5,900. The financial statements for Handy and Dandy for Year 9 were as follows: BALANCE SHEETS At December 31, Year 9 Handy Dandy Cash $ 1,480 $ 920 Accounts receivable 2,940 1,190 Inventory 3,540 3,060 Property, plant, and equipment—net 4,480 3,150 Investment in...
Par Corporation paid $7,200,000 for 360,000 shares of Sun Corporation's outstanding voting common stock on January...
Par Corporation paid $7,200,000 for 360,000 shares of Sun Corporation's outstanding voting common stock on January 1, 2011, when the stockholder's equity of Sun consisted of (inthousands): 10% cumulative, perferred stock, $100 par. Liquidation preference is $105 per share, and 20,000 shares are issued and outstanding with one year's dividends in arrears $2,000 Common stock, $10 par, 400,000 shares issued and outstanding $4,000 Other paid in Capital $1,000 Retained Earnings $1,300 Total Stockholders' equity $8,300 During 2011, Sun reported net...
a company has the following at January 1, 2018 2,000,000 shares of common stock issued and...
a company has the following at January 1, 2018 2,000,000 shares of common stock issued and $1 par outstanding 4,000,000 shares authorized Additional paid in capital $5,750,000 retained earnings $12,345,000 During 2018 the following happened Net income: $6,789,000 cash dividend declared May 15: $.70 per share cash dividends paid on Jun 30th stock dividends declared on November 30th : 17% stock dividend distributed on 12/31 the market price of the stock has been $36 all year Prepare journal entries to...
On July 1, 2018, Gupta Corporation bought 20% of the outstanding common stock of VB Company...
On July 1, 2018, Gupta Corporation bought 20% of the outstanding common stock of VB Company for $110 million cash. At the date of acquisition of the stock, VB’s net assets had a total fair value of $500 million and a book value of $290 million. Of the $210 million difference, $46 million was attributable to the appreciated value of inventory that was sold during the last half of 2018, $130 million was attributable to buildings that had a remaining...
On July 1, 2018, Gupta Corporation bought 30% of the outstanding common stock of VB Company...
On July 1, 2018, Gupta Corporation bought 30% of the outstanding common stock of VB Company for $170 million cash. At the date of acquisition of the stock, VB’s net assets had a total fair value of $490 million and a book value of $220 million. Of the $270 million difference, $50 million was attributable to the appreciated value of inventory that was sold during the last half of 2018, $160 million was attributable to buildings that had a remaining...
On July 1, 2018, Gupta Corporation bought 30% of the outstanding common stock of VB Company...
On July 1, 2018, Gupta Corporation bought 30% of the outstanding common stock of VB Company for $170 million cash. At the date of acquisition of the stock, VB’s net assets had a total fair value of $490 million and a book value of $220 million. Of the $270 million difference, $50 million was attributable to the appreciated value of inventory that was sold during the last half of 2018, $160 million was attributable to buildings that had a remaining...
On January 1, 2018, Warren Corporation had 1,000,000 shares of common stock outstanding. On March 1,...
On January 1, 2018, Warren Corporation had 1,000,000 shares of common stock outstanding. On March 1, the corporation issued 160,000 new shares to raise additional capital. On July 1, the corporation declared and issued a 2-for-1 stock split. On October 1, the corporation purchased on the market 520,000 of its own outstanding shares and retired them. Compute the weighted average number of shares to be used in computing earnings per share for 2018. Weighted average number of shares
On January 1, 2018, Edward Corporation had 29,000 shares of $5 par value common stock and...
On January 1, 2018, Edward Corporation had 29,000 shares of $5 par value common stock and 29,000 shares of 7%, $100 par value convertible preferred stock outstanding. The preferred shares carried a 2-for-1 conversion privilege. On October 1, 2018, all of the preferred shares were converted to common. What number of shares must Edward use in computing basic earnings per share at December 31, 2018?
January 1, 2018, a company is authorized to issue 200,000 shares $1.00 par common stock and...
January 1, 2018, a company is authorized to issue 200,000 shares $1.00 par common stock and 5,000 shares $200 par 5% cumulative and non-participating preferred stock. The transactions took place in 2018 Jan 14: issue 5,000 shares of common stock at $17 per share Feb 2: issue 4,000 shares of preferred stock in exchange for building with a fair market value of $800,000 July 6: Re-purchased 2,000 shares of common stock at $18 per share (cost method) Aug 15: sold...
Porter Corporation owns all 28,000 shares of the common stock of Street, Inc. Porter has 58,000...
Porter Corporation owns all 28,000 shares of the common stock of Street, Inc. Porter has 58,000 shares of its own common stock outstanding. During the current year, Porter earns net income (without any consideration of its investment in Street) of $209,000 while Street reports $181,000. Annual amortization of $13,000 is recognized each year on the consolidation worksheet based on acquisition-date fair-value allocations. Both companies have convertible bonds outstanding. During the current year, bond-related interest expense (net of taxes) is $41,000...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT