Zwick Company bought 28,000 shares of the voting common stock of Handy Corporation in January 2018. In December, Handy announced $200,000 net income for 2018 and declared and paid a cash dividend of $2 per share on all 200,000 shares of its outstanding common stock. Zwick Company's dividend revenue from Handy Corporation in December 2018 would be:

Zwick Company's dividend revenue  = $56,000

Explanation:

Given:

Shares by Zwick Corporation = 28,000

Handy announced dividend per share = $2

Find:

Zwick Company's dividend revenue

Computation:

Zwick Company's dividend revenue  = Shares by Zwick Corporation × Handy announced dividend per share

Zwick Company's dividend revenue  = 28,000 × $2

Zwick Company's dividend revenue  = $56,000

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