Food, Inc , a domestic corporation, owns 70 of the stock of Drink, Inc , a foreign corporation For the current year, Food receives a dividend of $20,000 from Drink Drink 's E P (after taxes) and foreign taxes are $6 million and $800,000, respectively What is Food 's total gross income from receipt ...

Deemedpaid credit 800000 foreign taxes 20000divided ...

Food, Inc., a domestic corporation, owns 70% of the stock of Drink, Inc., a foreign corporation. For

Question:

Food, Inc., a domestic corporation, owns 70% of the stock of Drink, Inc., a foreign corporation. For the current year, Food receives a of $20,000 from Drink.
Drink's E & P (after taxes) and foreign taxes are $6 million and $800,000, respectively. What is Food's total gross income from receipt of this if it elects to claim the FTC for deemed-paid foreign taxes?
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...