Cpa 02150 type1 mc a d corr ans c pm73 r 3 01 55

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 5,000 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 nonrefundable deposit. 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? a. b. c. d. $100,000 $80,000 $70,000 $0 CPA-02148 Explanation 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...
View Full Document

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.

Ask a homework question - tutors are online