What amount of dividend income should be reported for the currentyear? Chowking Company engaged in the following investment transactionsduring the current year:Purchased 5,000 ordinary shares of ZZZ Company forP200 per share plus a brokerage commission ofP50,000. These shares are classified as tradingFebruary 1securities.Received P120 per share dividend on ZZZ Company25shares.JunePurchased 20,000 shares of XXX Company for P150 perOctober1share plus brokerage fee of P100,000. These shares aredesignated at FVOCI.Received P50 per share dividend on XXX CompanyDecember 31shares.ZZZ Company shares are selling for P250 and XXX31shares are selling for P180.

To calculate dividend we need to multiply dividend per share with the total outstanding shares held…

Answered: What amount of dividend income should…

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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Similar questions

What does the price-to-earnings (P/E) ratio indicate? A) The percentage of earnings paid out as dividends B) The market price per share divided by earnings per share C) The rate of return on shareholders' equity D) The book value of equity per share
2 Tiger Audio declared and paid a cash dividend of $7,925 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Current Previous Income Statement $342,000 $281,000 175,650 166,350 63,600 6,400 96,350 28,905 Sales Revenue Cost of Goods Sold 159,000 122,000 52,930 5,670 63,400 19,020 Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (30%) Net Income $ 67,445 $ 44,380 Balance Sheet $ 72,520 32,900 49,000 151,000 $305,420 $ 45, 200 28,000 46,000 138, 200 Cash Accounts Receivable, Net Inventory Property and Equipment, Net Total Assets $257,400 $ 39,000 4,800 101,900 145,700 39,400 120,320 $ 37,000 4,000 116, 200 157, 200 39,400 60,800 Accounts Payable Income Tax Payable Note Payable (long-term) Total Liabilities Common Stock (par $1) Retained Earnings Total Liabilities and Stockholders' Equity $305,420 $257,400
How is the realised percentage return from investing in a share calculated? A. The cash flows received from the share divided by the price paid for the share. B. Dividends received plus the difference between the selling price and the purchase price, divided by the purchase price. C. The price paid for the share divided by the selling price. D. Both (b) and (c)
Define the term permanent earnings.
What is a “dividend return” and a “capital gain,” and how do these terms enterthe arbitrage equation when it is written in percentages?
How does one calculate the capital gains yield and the dividendyield of a stock?

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What amount of dividend income should be reported for the current year?