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Which of the following is deductible in calculating dividend received deduction modified taxable income? A) Charitable...

Which of the following is deductible in calculating dividend received deduction modified taxable income?

A) Charitable contribution deduction

B) Net capital loss carrybacks

C) Net operating loss carryovers

D) Dividends received deduction

Why?

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Answer #1

Answer:

Correct answer is:

A) Charitable contribution deduction

Explanation:

Dividend received deduction modified taxable income is calculated as taxable income before the dividends received deduction (DRD), any NOL carryover or carryback deduction, capital loss carryback deduction, and the domestic production activities deduction.

Hence charitable contribution deduction is allowed deductible.

As such A is correct and options B, C and D are incorrect.

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