Question

Zwick Company bought 21,500 shares of the voting common stock of Handy Corporation in January 2021. In December, Handy announced $201,500 net income for 2021 and declared and paid a cash dividend of $9.00 per share on all 207,500 shares of its outstanding common stock. Zwick Company's dividend revenue from Handy Corporation in December 2021 would be:

Answer 1

Answer:

$193,500

Explanation:

Calculation to determine what Zwick Company's dividend revenue from Handy Corporation in December 2021 would be

Using this formula

Dividend revenue =Voting common stock shares *Cash dividend

Let plug in the formula

Dividend revenue=21,500 shares x $9.00 per share

Dividend revenue = $193,500

Therefore Zwick Company's dividend revenue from Handy Corporation in December 2021 would be:$193,500