ABC Company owns 40 percent of JMT Company and 95 percent of DEM Company JMT pays a $80,000 dividend to ABC and DEM pays a $40,000 dividend to ABC in the current year Assuming that ABC has $1,000,000 of taxable income, calculate ABC 's dividends received deduction for the current year $120,000 $96,...

ABC Company owns 40 percent of JMT Company and 95 percent of DEM Company. JMT pays a

Question:

ABC Company owns 40 percent of JMT Company and 95 percent of DEM Company. JMT pays a $80,000 to ABC and DEM pays a $40,000 to ABC in the current year. Assuming that ABC has $1,000,000 of taxable income, calculate ABC's dividends received deduction for the current year.
$120,000
$96,000
$104,000
$140,000
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...