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A corporation buys shares of another domestic corporation. It receives $ 1 0 0 , 0 0 0 of dividend income. It holds the shares
A corporation buys shares of another domestic corporation. It receives $ of dividend income. It holds the shares for days and then sells the stock. What tax consequences accrue to the corporation from the receipt of the dividend? What is the rationale for the rule? Would the result change if the corporation only held the stock for five days? If so why? Does it really violate the rationale for the general rule?
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