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A corporation buys shares of another domestic corporation. They receive $100,000 of dividend income. They hold the shares for 75 days and then sell the

A corporation buys shares of another domestic corporation. They receive $100,000 of dividend income. They hold the shares for 75 days and then sell 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 5 days? If so, why? Does it really violate the rationale for the general rule?

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