B) $ 65,000
Explanation : If a corporation own more than 20% but less than 80% of distributing corporation, then dividend received deduction is 65% of total dividend received to the recipient . So, Russell corporation claim $ 100,000 X 65% = $ 65,000 for dividend received deduction .
Russell Corporation owns stock in Pierce Corporation and has operating income of $150,000 and operating expenses...
Copper Corporation, a calendar year 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) (Astume Copper's dividends received deduction is not limited by its taxable income.) a. $120,000 65150,000 c575.000 d. 597,500 De None of these choices...
Eagle Corporation, a calendar year corporation, owns stock in Hawk Corporation and has taxable income of $100,000 for the year before considering the dividends received deduction. In the current year, Hawk Corporation Days Eagle a dividend of $130,000, which was considered in Calculating the $100,000. What amount of dividends received deduction may Eagle daim it it owns 15% of Hawk's stock? a. $50,000 b. 365.000 Oc. so d. $84,500 e. None of these choices are correct
Parrnell Corporation owns 25% of Cross Corporation's stock. On May 1, Cross Corporation, with current E & P of $75,000, distributes land (fair market value of $235,000; basis of $200,000) to Parrnell . The land is subject to a liability of $150,000, which Parrnell assumes. a. Parrnell Corporation has dividend income of ? b. dividends received deduction of ?
In the current year, Red Corporation (a calendar year C corporation), which owns stock in Blue Corporation, had net operating income of $200,000 for the year. Blue pays Red a dividend of $40,000. Red takes a dividends received deduction of $20,000. Which of the following statements is correct? a. Red owns 80% or more of Blue Corporation. b. Red owns 20% or more, but less than 80% of Blue Corporation. c. Red owns less than 20% of Blue Corporation. d....
In the current year, Red Corporation (a calendar year C corporation), which owns stock in Blue Corporation, had net operating income of $200,000 for the year. Blue pays Red a dividend of $40,000. Red takes a dividends received deduction of $20,000. Which of the following statements is correct? a. Red owns 80% of Blue Corporation. b. Red owns 20% or more, but less than 80% of Blue Corporation. c. Red owns 80% or more of Blue Corporation. d. Red owns...
3. Eagle Corporation owns 2% of the stock in Hawk Corp, a U.S. corporation. Eagle has gross income from operations for the current year of $1,000 and deductible operating expenses of $300. In addition to the gross income from operations Eagle has $200 of dividends received from Hawk Corporation, during the year. Hawk is a U.S. corporation. a. How much of the dividends from Hawk must Eagle include in income for the year? b. What is the amount of Eagle's...
3. Eagle Corporation owns 2% of the stock in Hawk Corp, a U.S. corporation. Eagle has gross income from operations for the current year of $1,000 and deductible operating expenses of $300. In addition to the gross income from operations Eagle has $200 of dividends received from Hawk Corporation, during the year. Hawk is a U.S. corporation. a. How much of the dividends from Hawk must Eagle include in income for the year? b. What is the amount of Eagle's...
84) Eagle Corporation, a personal holding company, has the following results: Taxable income $200,000 Dividends-received deduction 30,000 Excess charitable contributions 10,000 Long-term capital gains 10,000 Federal income taxes 61,000 Calculate the PHC tax. 85) Raptor Corporation is a PHC for 2009 and reports $200,000 of taxable income on its federal income tax return. Operating profit $100,000 Long-term capital gain 80,000 Dividends (20%-owned corporation) 90,000 Interest 100,000 Gross income 370,000 Salaries expense (50,000) General and administrative expense (25,000) Dividends-received deduction (72,000)...
Iris Corporation owns 30% of Fresia Corporation's stock. On November 15, Fresia Corporation, with current E & P of $320,000, distributes land (fair market value of $100,000; basis of $160,000) to Iris. The land is subject to a liability of $80,000, which Iris assumes. Dividends Received Deduction Percentage of Ownership by Corporate Shareholder Deduction Percentage Less than 20% 50% 20% or more (but less than 80%) 65% 80% or more* 100% a. How is Iris Corporation taxed on the distribution?...
Iris Corporation owns 30% of Fresia Corporation's stock. On November 15, Fresia Corporation, with current E & P of $320,000, distributes land (fair market value of $100,000; basis of $160,000) to Iris. The land is subject to a liability of $80,000, which Iris assumes. Dividends Received Deduction Table Percentage of Ownership by Corporate Shareholder Deduction Percentage Less than 20% 50% 20% or more (but less than 80%) 65% 80% or more 100% a. How is Iris Corporation taxed on the...