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Choice "D" is correct. $1,800. Ral Corp. owns 10% of Ramo Corp.'s stock. A corporate shareholder
who owns less than 20% of a corporation's stock is entitled to a 70% dividends received deduction.
Ramo paid $6,000 in dividends to Ral. Ral may take a $4,200 dividends received deduction. Therefore,
the amount that will be included in Ral's income is $1,800. CPA-04365 Type1 M/C 144. CPA-04365 A-R Corr Ans: B PII May 92 #5 (Adapted) 9 PM#50 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):
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Becker CPA Review, PassMaster Questions
Lecture: Regulation 3 Dividends
Net long-term capital loss
Income before federal income tax...
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