Bay Company holds 60,000 of Fay Company's 200,000 outstanding shares and 8,000 of Hay Company's 400,000 outstanding shares. During the year, Fay declared and paid cash dividends of P10 per share. In the first quarter of the year, Hay declared and distributed a 10% share dividend. Hay also declared and paid its regular cash dividends to Its shareholders amounting to P2.50 per share. What amount should be reported as dividend revenue for the current year?
Bay Company holds 60,000 of Fay Company's 200,000 outstanding shares and 8,000 of Hay Company's 400,000 outstanding shares. During the year, Fay declared and paid cash dividends of P10 per share. In the first quarter of the year, Hay declared and distributed a 10% share dividend. Hay also declared and paid its regular cash dividends to Its shareholders amounting to P2.50 per share. What amount should be reported as dividend revenue for the current year?
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 5P
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Transcribed Image Text:Bay Company holds 60,000 of Fay Company's 200,000 outstanding shares and 8,000 of Hay Company's
400,000 outstanding shares. During the year, Fay declared and paid cash dividends of P10 per share.
In the first quarter of the year, Hay declared and distributed a 10% share dividend. Hay also declared
and pald Its regular cash dividends to Its shareholders amounting to P2.50 per share. What amount
should be reported as dividend revenue for the current year?
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