A b c d 0 10000 20000 30000 cpa 02234 explanation

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Unformatted text preview: re: Regulation 3 a. Must exceed the applicable percentage of the recipient shareholder's taxable income. b. Is affected by a requirement that the investor corporation must own the investee's stock for a specified minimum holding period. c. Is unaffected by the percentage of the investee's stock owned by the investor corporation. d. May be claimed by S corporations. CPA-02227 Explanation Choice "b" is correct. The corporate dividends received deduction is affected by a requirement that the investor corporation must own the investee's stock for a specified minimum holding period of more than 45 days. Choice "a" is incorrect. There is no percentage of taxable income requirement placed on the calculation of the dividends received deduction. Choice "c" is incorrect. An 80%+ owned subsidiary in a consolidated return receives a 100% dividends received deduction. It is 80% from other corporations, except those owed less than 20% in which case the dividends received deduction is 70%. Choice "d" is...
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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.

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