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STALIN [3.7K]
3 years ago
5

Copper Corporation owns stock in Bronze Corporation and has net operating income of $900,000 for the year. Bronze Corporation pa

ys Copper a dividend of $150,000. What amount of dividends received deduction may Copper claim if it owns 65% of Bronze stock (assuming Copper's dividends received deduction is not limited by its taxable income)? (Points : 5)
a. $0
b. $105,000
c. $120,000
d. $150,000
e. None of the above
Business
1 answer:
kow [346]3 years ago
8 0

Answer:

C) $120,000

Explanation:

Since Copper corporation owns 65% of Bronze Corporation, its dividends received deduction (DRD) is 80% of the dividends received.

  • stake at another corporation is less than 20%, DRD = 70%
  • stake at another corporation is between 20% to 80%, DRD = 80% (Copper's case)
  • stake at another corporation is higher than 80%, DRD = 100%

Therefore, if Copper received $150,000 in dividends from Bronze, it can deduct 80% of that amount = 80% x $150,000 = $120,000

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Explanation:

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3 years ago
Jacob and Mason go to a diner that sells burritos for $5 and tacos for $3. They agree to split the lunch bill evenly. Mason choo
Rainbow [258]

Answer:

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Explanation:

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In this case, we have to determine the additional cost of Jacob ordering a burrito instead of a taco. As Mason chose the tacos and they agreed to split the lunch bill evenly, if Jacob decides to eat the tacos, the cost for each of them is:

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