Answered: dividend of P 120 per share. The Market…

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dividend of P 120 per share. The Market value is P 150. What is the amount of dividend income? a. Zero

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A shareholder owns 20,000 shares costing P 1,000,000. Subsequently, the shareholders receive P 4,000 shares in lieu of cash dividend of P 120 per share. The Market value is P 150.
What is the amount of dividend income?

a. Zero
b. 3,000,000
c. 2,400,000
d. 600,000

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