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nonrefundable rent deposit is additional rent revenue, for a total of $65,000.
Choice "a" is incorrect. This answer ignores the change in the rent receivable account and the
Choice "b" is incorrect. This answer ignores the rent receivable account.
Choice "c" is incorrect. This answer ignores the nonrefundable deposit. CPA-02148 Type1 M/C A-D Corr Ans: D PM#72 R 3-01 54. CPA-02148 PII May 93 #43 Page 25
In 19X2, Portal Corp. received $100,000 in dividends from Sal Corp., its 80%-owned subsidiary. What
net amount of dividend income should Portal include in its 19X2 consolidated tax return?
Choice "d" is correct. If a corporation owns 80% or more of another corporation, the dividends received
deduction is 100% as the dividend income is eliminated in consolidation. Therefore, the net amount of
dividend income is $0.
Choice "a" is incorrect. 100% of the dividend is eliminated, not included in the consolidated tax return.
Choice "b" is incorrect. This answer is 80% of th...
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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