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a. In 2020, VQQ Inc. received $350,000 in dividends from Cohen Labratories Inc. VQQ's taxable income before the dividends received deduction (but including the
a. In 2020, VQQ Inc. received $350,000 in dividends from Cohen Labratories Inc. VQQ's taxable income before the dividends received deduction (but including the dividend income) AND before a $30,000 charitable contribution deduction is $300,000. What is VQQ's DRD assuming it owns 15% of the Cohen Labratories Inc. stock, as well as its taxable income for 2020? (20 points) b. Is the DRD a temporary or permanent difference? Favorable or unfavorable? Will it create a deferred tax asset or liability? Briefly explain your answers. (5 points)e c. Assume the corporation made $50,000 in charitable contributions but was allowed only the $30,000 deduction. Assuming VQQ expects to be profitable and have taxable income in future years, and that it does not plan to make any future charitable contributions, is this a temporary or permanent difference? Favorable or unfavorable? Will it create a deferred tax asset or liability? Briefly explain your answers. (5 points)
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