Problem:
Zwick Company bought 28,000 shares of the voting common stock of Handy Corporation in January 2013. In December, Handy announced $200,500 net income for 2013 and declared and paid a cash dividend of $4 per share on the 202,000 shares of outstanding common stock. Zwick Company's dividend revenue from Handy Corporation in December 2013 would be:
- $ 0.
- $27,792.
- $112,000.
- None of the above is correct.
Note: Be sure to show how you arrived at your answer.