Question
Brown Corporation has the following items for Year 1. Its income statement is as follows. There are no NOL and capital losscarryback, and DPAD. Income
Brown Corporation has the following items for Year 1. Its income statement is as follows. There are no NOL and capital losscarryback, and DPAD.
Income
Sales100
Dividends received from stock investments in
Less than 50% owned U.S.corporations30
Interest income
City of Flintbonds10
Google bonds20
Total capital gains20
Life insurance receipt from the pass-away of CEO Janet.50
Expenses
Cost of goodssold30
Salariesexpenses20
Total CapitalLoss22
Interest expense:
Loan to purchase City of Flintbonds12
Other businessloans11
Depreciation for bookpurpose*20
Premiums on term life insurance policies on lives
of CEO Janet andKim32
*Depreciation for tax purposes is $30
The following questions all concern about Year 1.
(a) What is the dividend received deduction? (2pts) Ignore any exception or taxable income limitation.
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