XYZ Corp., a C corporation, owns 1% of Apple Inc., a domestic C corporation. XYZ Corp.had...

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XYZ Corp., a C corporation, owns 1% of Apple Inc., a domestic C corporation. XYZ Corp.had...

XYZ Corp., a C corporation, owns 1% of Apple Inc., a domestic C corporation. XYZ Corp.had dividend income of $1,000 from Apple Inc. in 2019. XYZ Corp. had taxable income of over $300,000 this year (before DRD).What is that amount of XYZ Corp.’s dividends received deduction?

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Answer 1

Answer #1

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Explanation

Amount ($)

XYZ Corp.’s Dividends Received Deduction

C-corporations with less than 20% ownership stake in the corporate entity distributing the dividend can deduct 70% of the received dividends.

= $1000 * 70%

700

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Answer 2

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