In the current year, Parvifolia, Inc. had $400,000 of revenue from operations and $160,000 of dividends from nonaffiliated 15-percent-owned domestic corporations. The corporation's deductible operating expenses totaled $410,000. What is Parvifolia, Inc.'s dividends received deduction for the current year?

Question

Quizplus · Accepted Answer

The dividends received deduction for the current year is calculated as 50% of the dividends received from nonaffiliated 15-percent-owned domestic corporations. Therefore, the dividends received deduction is $80,000 (50% of $160,000).

In the Current Year, Parvifolia, Inc