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10 September, 23:21

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.

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Answers (1)
  1. 11 September, 00:26
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    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.
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