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Albert Co. acquired 4,000 shares of Nolan, Inc., common stock on October 20, Year 2, for $66,000. On November 30, Year 4, Nolan distributed a 10% common stock dividend when the market price of the stock was $25 per share. On December 20, Year 4, Albert sold 400 shares of its Nolan stock for $10,600. For the year ended December 31, Year 4, how much should Albert report as dividend revenue

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jepessoa

Answer:

$10,000

Explanation:

Albert has 4,000 stocks and Nolan distributed a 10% common stock dividend on November 30, that means that Albert received 400 common stocks as dividend payments.

To calculate the amount that Albert must report as dividend income, we must multiply the total amount of common stocks received as dividend payment times the market price of the stocks at November 30 = 400 shares x $25 per share = $10,000

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