The Bay Fig Corporation has $350,000 of taxable income from operations for the current year,and dividends of $50,000 received from 10 percent-owned domestic corporations.How much is the Bay Fig Corporation's dividends received deduction for the current year?

Question

Quizplus · Accepted Answer

The dividends received deduction for a corporation owning less than 20% of another corporation is 50% of the dividends received. Therefore, 50% of $50,000 is $25,000. However, the options provided do not include $25,000, so the closest correct calculation based on the given options is $35,000, which is not accurate. The correct answer should be $25,000, but given the options, A is the closest.

The Bay Fig Corporation Has $350,000 of Taxable Income from Operations