Jenkins Corporation has the following income and expense items during the current year:

The allowed dividends-received deduction is

Question

Jenkins Corporation has the following income and expense items during the current year:

The allowed dividends-received deduction is

Quizplus · Accepted Answer

A) Preliminary Computation:
 11ea7e84_1f32_14c6_9a0a_f5c35a5c4655_TB1260_00 The dividends-received deduction under the general rule is $120,000 (.80 × $150,000). The DRD limitation on taxable income before the dividends-received deduction is 80% × $125,000 = $100,000. Thus, the dividends-received deduction is limited to $100,000.

Jenkins Corporation Has the Following Income and Expense Items During