Copper Corporation, a calendar year C corporation, owns stock in Bronze Corporation and has net operating income of $900,000 for

Question

3 years ago

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Copper Corporation, a calendar year C corporation, owns stock in Bronze Corporation and has net operating income of $900,000 for

the current year. Bronze Corporation pays Copper a dividend of $150,000. What amount of dividends received deduction may Copper claim if it owns 85% of Bronze stock (and the two corporations are members of the same affiliated group)? (Assume Copper's dividends received deduction is not limited by its taxable income.)

Business

1 answer:

Olegator [25] · Answer 1 · 2022-07-27T15:36:06+03:00

Answer:

$150,000

Explanation:

Copper Corporation

The amount of dividends received deduction will tend to depends upon the ownership percentage by the corporate shareholder.

Therefore in a situation where Copper Corporation is said to owns only 85% of what Bronze Corporation had, Copper Corporation definitely qualify for a percentage of 100 deduction or a total amount of $150,000.if we have to based on the above information given because Bronze Corporation pays Copper Corporation a dividend of $150,000.