Question

Carpenter Company bought 20,000 shares of the voting stock of Hart Corporation in July 2017. The...

Carpenter Company bought 20,000 shares of the voting stock of Hart Corporation in July 2017. The following February, Hart announced $200,000 net income for2017 and declared and paid a cash dividend of fifty cents per share on the 200,000 shares of outstanding common stock. Carpenter Company’s dividend revenue from Hart Corporation in February 2018 would be:

$0

$ 5,000

$10,000

$20,000

Homework Answers

Answer #1
COMPUTAITON OF THE DIVIDEND REVENUE
Number of Shares bought (A)                           20,000 Shares
Dividend Per shares declared and paid (B) $                            0.50
Total Dividend Revenue (A X B) = $                       10,000
Answer = Option 3 = $ 10,000
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