In 20X0, Neil Company held the following investments in common stock:
• 25,000 shares of B&K Inc.’s 100,000 outstanding shares. Neil’s level of ownership gives it the
ability to exercise significant influence over the financial and operating policies of B&K.
• 6,000 shares of Amal Corporation’s 309,000 outstanding shares.
During 20X0, Neil received the following distributions from its common stock investments:
November 6 $30,000 cash dividend from B&K
November 11 $1,500 cash dividend from Amal
December 26 3 percent common stock dividend from Amal
The closing price of this stock was $115 per share.
What amount of dividend revenue should Neil report for 20X0?
a. $1,500.
b. $4,200.
c. $31,500.
d. $34,200.
