This year, Prewer Inc. received a $160,000 dividend on its investment consisting of 16 percent of the

Question:

This year, Prewer Inc. received a $160,000 on its investment consisting of 16 percent of the outstanding stock of TKS Inc., a taxable domestic corporation. Before considering this Prewer had a $43,500 operating loss for the year. It also had a $31,300 NOL carryover deduction from the prior year. What is Prewer’s taxable income this year? Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...