Homework Answers
Answer) d. A corporation must hold stock for more than 90 days in order to qualify for a deduction with respect to dividends on such stock.
Explanation:
A corporation must hold stock for more than 45 days in order to qualify for a deduction with respect to dividends on such stock,Therefore the option (d) is incorrect.
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Which of the following statements is incorrect regarding the dividends received deduction? a. The taxable income...
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%....
OF WIL YUJTUR. 1. SubCo sells an asset to ParentCo at a realized gain. While ParentCo...
OF WIL YUJTUR. 1. SubCo sells an asset to ParentCo at a realized gain. While ParentCo still holds the asset, SubCo leaves the consolidated group. As a result: a. The gain never is recognized. b. SubCo recognizes the gain on its first tax return after leaving the group. c. The group recognizes the gain under the related party rules. d. The group recognizes the gain under the acceleration rule. 2. Which of the following statements is incorrect regarding the dividends...
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
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. The dividends-received deduction is designed to reduce double taxation of corporate dividends. The full 65% dividends-received deduction is available without restriction. 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. All of the above are false.
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....
Which of the following statements is true regarding the deduction for qualified business income (QBI)? A....
Which of the following statements is true regarding the deduction for qualified business income (QBI)? A. The deduction changes the calculation of self-employment tax. B. Taxable income is reduced below zero by the deduction. C. The deduction is not limited by income or service trade or business. D. A sole proprietor may be able to deduct up to 20% of QBI.
EXHIBIT 16-6 Stock Ownership and Dividends Received Deduction Percentage | Receiving Corporation's Stock Ownership in Distributing...
EXHIBIT 16-6 Stock Ownership and Dividends Received Deduction Percentage | Receiving Corporation's Stock Ownership in Distributing Corporation's Stock Less than 20 percent At least 20 percent but less than 80 percent 80 percent or more Dividends Received Deduction Percentage 50% 65 100 * To qualify for the 100 percent dividends received the receiving and distributing corporations must be in the same affiliated group as described in $1504. The 80 percent ownership requirement is the minimum ownership level required for inclusion...
Riverbend Inc. received a $282,500 dividend from stock it held in Hobble Corporation. Riverbend's taxable income...
Riverbend Inc. received a $282,500 dividend from stock it held in Hobble Corporation. Riverbend's taxable income is $2,330,000 before deducting the dividends received deduction (DRD), a $69,000 NOL carryover, and a $101,000 charitable contribution. Use Exhibit 16-6. (Round your tax rates to 1 decimal place. Leave no answer blank. Enter zero if applicable.) a. What is Riverbend’s deductible DRD assuming it owns 10 percent of Hobble Corporation? b. Assuming the facts in part (a), what is Riverbend’s marginal tax rate...
84) Eagle Corporation, a personal holding company, has the following results: Taxable income $200,000 Dividends-received deduction &nbs
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)...
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...
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%....
OF WIL YUJTUR. 1. SubCo sells an asset to ParentCo at a realized gain. While ParentCo still holds the asset, SubCo leaves the consolidated group. As a result: a. The gain never is recognized. b. SubCo recognizes the gain on its first tax return after leaving the group. c. The group recognizes the gain under the related party rules. d. The group recognizes the gain under the acceleration rule. 2. Which of the following statements is incorrect regarding the dividends...
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
EXHIBIT 16-6 Stock Ownership and Dividends Received Deduction Percentage | Receiving Corporation's Stock Ownership in Distributing Corporation's Stock Less than 20 percent At least 20 percent but less than 80 percent 80 percent or more Dividends Received Deduction Percentage 50% 65 100 * To qualify for the 100 percent dividends received the receiving and distributing corporations must be in the same affiliated group as described in $1504. The 80 percent ownership requirement is the minimum ownership level required for inclusion...
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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