Zwick Company bought 28,000 shares of the voting common stock of Handy Corporation in January 2013. In December, Hart announced $200,000 net income for 2013 and declared and paid a cash dividend of $2 per share on the 200,000 shares of outstanding common stock. Zwick Company's dividend revenue from Handy Corporation in December 2013 would bea.$ 0.

b.$27,792.

c.$112,000.

d. None of the above is correct.

Question

Business

Litzy Webb

28 September, 17:26

Zwick Company bought 28,000 shares of the voting common stock of Handy Corporation in January 2013. In December, Hart announced $200,000 net income for 2013 and declared and paid a cash dividend of $2 per share on the 200,000 shares of outstanding common stock. Zwick Company's dividend revenue from Handy Corporation in December 2013 would bea.$ 0.

b.$27,792.

c.$112,000.

d. None of the above is correct.

+2

Answers (1)

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Silvia · Answer 1

The correct answer is option (d).

Explanation:

According to the scenario, the given data are as follows:

Zwick bought stock = 28,000

Dividend paid = $2

So, we can calculate the Zwick company's dividend revenue by using following formula:

Zwick Company's dividend revenue = Zwick bought stock * Dividend paid

= 28,000 * $2

= $56,000

Hence, None of the above is correct answer for the scenario.