Question
(3 points) Parent Corporation owns 85% of Sub Corporation. In the current year Parent Corporation has $60,000 of taxable income before considering $8,000 of dividends
(3 points) Parent Corporation owns 85% of Sub Corporation. In the current year Parent Corporation has $60,000 of taxable income before considering $8,000 of dividends received from Sub Corporation.
a. What is the dividends received deduction for Parent?
b. Same facts as above except that Parent owns 40% of Sub Corporation. What is the dividends received deduction?
c. Same facts as in a. except that Parent owns 15% of Sub Corporation. What is the dividends received deduction?
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
9th Edition
978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475
