Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a corporation buys shares of another domestic corp

A corporation buys shares of another domestic corporation. They receive $100,000 of dividend income. They hold the...

50.1K

Verified Solution

Question

Accounting

A corporation buys shares of another domesticcorporation. They receive $100,000 of dividend income. They holdthe shares for 75 days and then sell the stock. What taxconsequences accrue to the corporation from the receipt of thedividend? What is the rationale for the rule? Would the resultchange if the corporation only held the stock for 5 days? If so,why? Does it really violate the rationale for the general rule?

Answer & Explanation Solved by verified expert
4.4 Ratings (601 Votes)
As per the applicable rules a corporation is eligible for dividend received deduction in the following amounts 1 50 of the dividend received from the other corporation 2 65 of the dividend received if the corporation that received the dividend owns 20 or more of the stock of the dividend distributing corporation 3 100 of the dividend received if    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

An xy trail M is greedy if every edge incident to y is contained in M....

Psychology
1.2K views

Consider Diversity and Democracy as it relates to the American Civil War. What are the critical...

Physics
1.2K views

the three displacements given are 69.8m , 53? west of north; 11.3m straight north; and 83.6m...

Physics
1.2K views

What is the length of a one-dimensional box in which an electron in the n =...

Biology
1.2K views

What is the reasonably predicted outcome for a person who has lost the function of...

Basic Math
1.2K views

The table to the right categorizes 20 senators as to political party and gender. One...

Accounting
1.2K views

1. Describe the finance and investment cycle, including typical source documents and controls. 2.Give an...

Accounting
1.2K views

which statements below regarding the net capital gain or loss of a trust is not...

Accounting
1.2K views

Part (a) In what circumstances are individuals and companies treated as residents of New Zealand?...

Accounting
1.2K views

Billies Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for...

Accounting
1.2K views

F4-22 Requirement1 CATERERSEI HE IS 19 E4-22- marks) assignment 3 L2 22 Pepering and dig...

Accounting
1.2K views

Whitman Company has just completed its first year of operations. The company's absorption costing income...