Q11 Identify which of the following statements is true. The dividends-received deduction is designed to reduce...
Q11 Identify which of the following statements is true.
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The dividends-received deduction is designed to reduce double taxation of corporate dividends. |
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The full 65% dividends-received deduction is available without restriction. |
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If a corporation receives dividends eligible for the 65% dividends-received deduction and the 50% dividends-received deduction, the 50% dividends-received deduction reduces taxable income prior to the 65% deduction. |
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All of the above are false. |
Homework Answers
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Q11 Identify which of the following statements is true.
The dividends-received deduction is designed to reduce...
Question 26 The dividends-received deduction is designed to reduce double taxation of corporate dividends payable to...
Question 26 The dividends-received deduction is designed to reduce double taxation of corporate dividends payable to individual shareholders. True False Henry transfers property with an adjusted basis of $90,000 and an FMV of $100,000 to a newly-formed corporation in a Sec. 351 exchange. Henry receives stock with an FMV of $80,000 and a short-term note with a $20,000 FMV. Henry's recognized gain is $0. $5,000 $20,000 $10,000 Sun and Moon Corporations each have only one class of stock outstanding. Their...
2. Which of the following statements is incorrect regarding the dividends received deduction? a. A corporation...
2. Which of the following statements is incorrect regarding the dividends received deduction? a. A corporation must hold stock for more than 90 days in order to qualify for a deduction with respect to dividends on such stock. b. The taxable income limitation does not apply with respect to the 100% deduction available to members of an affiliated group c. If a stock purchase is financed 75% by debt, the deduction for dividends on such stock is reduced by 75%....
Which of the following statements is incorrect regarding the dividends received deduction? a. The taxable income...
Which of the following statements is incorrect regarding the dividends received deduction? a. The taxable income limitation does not apply if the normal deduction (i.e., 50% or 65% of dividends) results in a net operating loss for the corporatio Ob. If a stock purchase is financed 75% by debt, the deduction for dividends on such stock is reduced by 75%. c. The taxable income limitation does not apply with respect to the 100% deduction available to members of an affiliated...
7. Identify which of the following statements is false. A) The 65% dividends-received deduction can be claimed when comp...
7. Identify which of the following statements is false. A) The 65% dividends-received deduction can be claimed when computing a corporation's undistributed personal holding company income (UPHCI). B) Rental expenses in excess of rental income are added back to taxable income to arrive at personal holding company income (PHCI). C) Ramirez Corporation is a personal holding company. Its taxable income for this year is $75,000. The corporation's charitable contributions are $10,000 greater than its income tax charitable contribution deduction limitation....
TRUE OR FALSE? 3. A "C" corporation is allowed an "ordinary and necessary deduction for dividends...
TRUE OR FALSE?
3. A "C" corporation is allowed an "ordinary and necessary deduction for dividends paid to shareholders. 4. In many situations, a "C" corporation receiving a dividend from another "C" corporation may deduct 50% of the dividends received from taxable income.
Because of the taxable income limitation, no dividends received deduction is allowed if a corporation has...
Because of the taxable income limitation, no dividends received deduction is allowed if a corporation has an NOL for the current taxable year. True False
In each of the following independent situations, determine the dividends received deduction for the calendar year C corp...
In each of the following independent situations, determine the
dividends received deduction for the calendar year C
corporation.
The Rose Corporation owns 15%, Pansy owns 10% and Daffodil owns
55% of the stock in the corporations paying the dividends.
Rose
Corporation
Pansy
Corporation
Daffodil
Corporation
Income from operations
$1,200,000
$1,200,000
$1,200,000
Expenses from operations
(800,000)
(1,300,000)
(1,500,000)
Qualifying dividends
400,000
400,000
400,000
The dividends received deduction for Pansy Corporation is
EXHIBIT 12.5 Dividends Received Deduction Percentage of Ownership by Corporate...
Which of the following qualifies for the dividends-received deduction? A. Dividends on deposits in a mutual...
Which of the following qualifies for the dividends-received deduction? A. Dividends on deposits in a mutual savings bank. B. Dividends from a real estate investment trust. C. Dividends from a taxable domestic corporation. D. Dividends from a DISC paid out of accumulated DISC income.
Identify which of the following statements are true for the corporate form of organization. Choose all...
Identify which of the following statements are true for the corporate form of organization. Choose all that apply. (A) Owners have limited liability for corporate debts.checked (B) It has an unlimited life.unchecked (C) Directors oversee its business affairs.checked (D) Ownership is usually transferred readily.unchecked (E) Generally there is no double taxation on corporate income that is distributed to owners.unchecked (F) It is not a separate legal entity from its owners.checked (G) Owners are agents of the corporation. This one has...
. 1. Identify which of the following statements is true: C Corporation operating losses are deductible...
. 1. Identify which of the following statements is true: C Corporation operating losses are deductible by the individual shareholders S Corporation operating losses are never deductible by the individual shareholders. If an S Corporation has no accumulated earnings and profits, the amount distributed to a shareholder will not increase the shareholder's basis in the stock If a C Corporation does not distribute its income to its shareholders, double taxation of the income will occur. 2. The adjusted basis of...
Question 26 The dividends-received deduction is designed to reduce double taxation of corporate dividends payable to individual shareholders. True False Henry transfers property with an adjusted basis of $90,000 and an FMV of $100,000 to a newly-formed corporation in a Sec. 351 exchange. Henry receives stock with an FMV of $80,000 and a short-term note with a $20,000 FMV. Henry's recognized gain is $0. $5,000 $20,000 $10,000 Sun and Moon Corporations each have only one class of stock outstanding. Their...
2. Which of the following statements is incorrect regarding the dividends received deduction? a. A corporation must hold stock for more than 90 days in order to qualify for a deduction with respect to dividends on such stock. b. The taxable income limitation does not apply with respect to the 100% deduction available to members of an affiliated group c. If a stock purchase is financed 75% by debt, the deduction for dividends on such stock is reduced by 75%....
Which of the following statements is incorrect regarding the dividends received deduction? a. The taxable income limitation does not apply if the normal deduction (i.e., 50% or 65% of dividends) results in a net operating loss for the corporatio Ob. If a stock purchase is financed 75% by debt, the deduction for dividends on such stock is reduced by 75%. c. The taxable income limitation does not apply with respect to the 100% deduction available to members of an affiliated...
TRUE OR FALSE?
3. A "C" corporation is allowed an "ordinary and necessary deduction for dividends paid to shareholders. 4. In many situations, a "C" corporation receiving a dividend from another "C" corporation may deduct 50% of the dividends received from taxable income.
Because of the taxable income limitation, no dividends received deduction is allowed if a corporation has an NOL for the current taxable year. True False
In each of the following independent situations, determine the
dividends received deduction for the calendar year C
corporation.
The Rose Corporation owns 15%, Pansy owns 10% and Daffodil owns
55% of the stock in the corporations paying the dividends.
Rose
Corporation
Pansy
Corporation
Daffodil
Corporation
Income from operations
$1,200,000
$1,200,000
$1,200,000
Expenses from operations
(800,000)
(1,300,000)
(1,500,000)
Qualifying dividends
400,000
400,000
400,000
The dividends received deduction for Pansy Corporation is
EXHIBIT 12.5 Dividends Received Deduction Percentage of Ownership by Corporate...
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