Ski Corporation owns 30 percent of Snow Corporation. Snow pays Ski a dividend of $20,000. What...

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Ski Corporation owns 30 percent of Snow Corporation. Snow pays Ski a dividend of $20,000. What is the amount of Skis dividen

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Answer 1

Answer #1

Answer: d.$16,000

Explanation:

Dividend received deduction	%
Own less than 20%	70%
Own at least 20% but less than 80%	80%
Own 80% or more	100%

Ski corporation owns 30%. So that, Dividend received deduction = $20,000 x 80% = $16,000

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Answer 2

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Add Answer to: Ski Corporation owns 30 percent of Snow Corporation. Snow pays Ski a dividend of $20,000. What...

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