Northwick Company acquired 10,000 shares of the common stock of Shaver Corp. in July 2011. The following January, Shaver announced a $100,000 net income for 2011 and declared a cash dividend of $.50 per share on its 100,000 shares of outstanding common stock. The Northwick Company dividend revenue from Shaver Corp. in January 2011 would be

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Northwick Company acquired 10,000 shares of Shaver Corp. If Shaver Corp. has 100,000 shares of outstanding common stock and declared a cash dividend of $.50 per share, Northwick Company would receive a dividend revenue of $5,000 (10,000 shares x $.50 per share). The fact that Shaver announced a net income of $100,000 in 2011 is irrelevant in this context.

Northwick Company Acquired 10,000 Shares of the Common Stock of Shaver