Zwick Company bought 28,000 shares of the voting common stock of Handy Corporation in January 2016.In December,Handy announced $200,000 net income for 2016 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 2016 would be:

Question

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Zwick Company bought 28,000 shares of the voting common stock of Handy Corporation. Since Handy Corporation declared a cash dividend of $2 per share on the 200,000 shares of outstanding common stock, Zwick Company would receive a dividend revenue of 28,000 shares x $2 per share = $56,000 in December 2016. Therefore, the correct answer is option C.

Zwick Company Bought 28,000 Shares of the Voting Common Stock