cobb must include $18,000 as dividend income in its income statement for the current year.
Given,
10,000 shares were bought.
2 ownership
2,000 shares of stock were received as a dividend.
The market price per share is $40.
$1.50 per share in cash dividends
The formula listed below can be used to determine dividend income:
Number of Shares x Dividend Per Share = Dividend Income
Dividend Income = 12,500 divided by $1.50
$18,000 is the dividend income.
the dividend income is $18,000 as a result.
Amounts delivered to the company's shareholders are referred to as dividend income dividend income. As a result, the company's profits or earnings are used to pay out dividends.
Learn more about dividend income here:
brainly.com/question/26031527
#SPJ4
