The Bay Fig Corporation has $350,000 of taxable income from operations for 2014, and dividends of $100,000 received from 10 percent-owned domestic corporations. How much is the Bay Fig Corporation's dividends received deduction for 2014?

Question

Quizplus · Accepted Answer

The dividends received deduction for dividends received from 10 percent-owned domestic corporations is 70 percent of the dividends received. Therefore, the Bay Fig Corporation's dividends received deduction for 2014 is $70,000 (70% x $100,000).

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