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taurus [48]
3 years ago
10

Plack Co. purchased 10,000 shares (2o/o ownership) of Ty Corp. on February 14, Year 1. Plack received astock dividend of 2,000 s

hares on April 30, Year 1, when the market value per share was $35. Ty paid a cash dividend of $2 per share on December 15, Year 1. In its Year 1 income statement, what amount should Plack report as dividend income?a. $20,000b. $24,000c. $90,000d. $94,000
Business
1 answer:
timofeeve [1]3 years ago
5 0

Answer:

d. $94,000

Explanation:

April 30th:

2,000 shares x $35 per share = 70,000 sotck dividends

December 15th:

12,000 shares x $ 2 per share =   24,000 cash dividends

                                   total            94,000

The dividend income will be for 94,000 the sum of both proceeds fom Ty Corp

Plack will declare income for both, the stock received and the cash dividends.

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