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15. Chapter 3: A deferred tax asset indicates that a firm will realize the tax benefit of an event sometime in the future. A) True B) False 16. Chapter 3: Aggie Corporation receives a dividend of $100,000 from Jordan Corporation, a C Corporation. Aggie owns 70% of Jordan Corporation stock. Aggie's dividends received deduction is $80,000. A) True B) False 17. Chapter 3: Organizational expenditures include all of the following except for A) expenses of organizational meetings. B) legal costs incident to the creation of the corporation. C) costs incurred when issuing stock. D) fees paid to the state of incorporation. 18. Chapter 3: Jacob Corporation reports the following results. Gross income from operations Dividends received from 18%-owned domestic corporation Expenses Jacob's dividends-received deduction is $ 90,000 70,000 100,000 A) $30,000. B) $56,000. C) $49,000. D) $70,000. 19. Chapter 3: Aggie Corporation has gross profits on sales of $140,000 and deductible expenses of $180,000. In addition, Aggie Corp has a net capital gain of $100,000. Aggie's taxable income is A) $20,000 loss. B) $20,000. C) $40,000 loss. D) $60,000. 20. Chapter 3: The dividends-received deduction does not always eliminate the taxation of corporate dividends. A) True B) False 3 Levels

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