Answer:
Yes, it will affect it.
Explanation:
The dividends received deduction (DRD) refers to a US federal tax law that allows some corporation that are paid dividend by related entities to deduct certain percentage of the dividend received from their income tax depending on their percentage of ownership of the related entity that paid the dividend.
The three criteria or tiers that determines how much to deduct as DRD are as follows:
1. Generally, the DRD a corporation is qualified for is 70% of the dividend received.
2. A DRD equals to 80% of the dividend received can be deducted if the corporation holds more than 20% but less than 80% shareholding of the company that paid the dividend.
3. If the corporation holds more than 80% shareholding of the company that paid the dividend, a DRD of 100% of the dividend applies.
Therefore, additional stock purchase will affect the amount of dividends received deduction that Mustard can claim.
Basic or elementary business education
A form of business ownership that provides limited liability to its owners, but is taxed as a partnership is a Limited Liability Company (LLC).
Limited Liability Company (LLC) is a form of business structure that gives protection to its owners against any debts or liabilities owned by the company. This means that the liability of the owners is limited to the amount of investment they have in the company.
This type of business is growing primarily in the United States. They do not pay taxes on their profits directly. Their profits and losses are passed through to members, who report them on their individual tax returns.
Therefore, Liability Company (LLC) is a form of business ownership that provides limited liability to its owners, but is taxed as a partnership.
Learn more about Limited Liability Company (LLC) in this link : brainly.com/question/13888388
A. Its true NOT B but its not false.
