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Choice "C" is correct. $1,400. Ral Corp. owns 30% of Clove Corp.'s stock. A corporate shareholder
who owns between 20% and less than 80% of a corporation's stock is entitled to an 80% dividends
received deduction. Clove paid $7,000 in dividends to Ral. Ral may take a $5,600 dividends received
deduction. Therefore, the amount that will be included in Ral's income is $1,400. CPA-04356 Type1 M/C 143. CPA-04356 A-R Corr Ans: D PII May 92 #5 (Adapted) 8 PM#49 R 3-99 Page 3 Following is Ral Corp.'s condensed income statement, before federal income tax, for the year ended
December 31, 1993:
Cost of sales
Other income (loss):
Net long-term capital loss
Income before federal income tax $1,000,000
(6,400) Additional information:
Interest arose from the following sources:
U.S. Treasury notes
Total interest 18,000
98,000 $ 3,000
5,200 Dividends aros...
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This note was uploaded on 06/14/2013 for the course ACCOUNTING Regulation taught by Professor Becker during the Fall '10 term at Keller Graduate School of Management.
- Fall '10
- The Land