At the start of the current year, Violet Company held 30% of ABC Company's 150,000 outstanding shares and 2% of DEF Company's 500,000 outstanding shares. During the year, Violet received a P25,000 cash dividend from ABC and a 5% share dividend when the stock of ABC was selling at P40 per share. DEF declared a P15 per share dividend during the year but subsequently issued 500 shares to Violet in lieu of the cash dividends. At the end of the year, Violet received P50,000 as liquidating dividends from DEF Company. How much will Violet report as dividend income for the current year?

At the start of the current year, Violet Company held 30% of ABC Company's 150,000 outstanding shares and 2% of DEF Company's 500,000 outstanding shares. During the year, Violet received a P25,000 cash dividend from ABC and a 5% share dividend when the stock of ABC was selling at P40 per share. DEF declared a P15 per share dividend during the year but subsequently issued 500 shares to Violet in lieu of the cash dividends. At the end of the year, Violet received P50,000 as liquidating dividends from DEF Company. How much will Violet report as dividend income for the current year?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter19: Corporations: Distributions Not In Complete Liquidation

Section: Chapter Questions

Problem 1BCRQ

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