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Choice b is incorrect intercompany dividends are

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Unformatted text preview: rect. These percentages are applicable to individuals (50% cash and 30% property thresholds). Choice "d" is incorrect, per the above rule. 50 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. Maxixishere Pdf Collection Becker CPA Review, PassMaster Questions Lecture: Regulation 3 CPA-02205 Type1 M/C 102. CPA-02205 A-D Nov 89 II #45 Corr Ans: B PM#8 R 3-99 Page 18 Kell Corp. Income statement for the year ended December 31, 1988: Sales Cost of sales Gross margin Operating expenses Operating income Other income: Gain on sale of investments Life insurance policy proceeds Dividends Total Other expense: Contributions Income before income tax $900,000 600,000 300,000 250,000 50,000 $ 15,000 10,000 3,000 78,000 28,000 8,000 $ 70,000 Included in Kell's operating expenses were the following life insurance premiums: Term life insurance premiums paid on the life of Kell's controller, with Kell as owner and beneficiary of the policy Group-term life insurance premiums paid on employees' lives, with the employees' dependents as owners and beneficiaries of the policies $ 2,000 18,000 In its 1988 income tax return, what amount...
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