During 2014, the Melaleuca Corporation received dividends from 50-percent-owned domestic corporations in the amount of $100,000.
a.Assuming that in addition to the dividend income the corporation has gross income from operations of $250,000 and deductible operating expenses of $210,000, calculate the amount of the corporation's dividends received deduction for 2014.
b.If, instead of $250,000 in gross income from operations, the corporation has $200,000 in gross income from operations and the same amount of dividends and expenses, calculate the amount of the corporation's dividends received deduction for 2014.

Question

During 2014, the Melaleuca Corporation received dividends from 50-percent-owned domestic corporations in the amount of $100,000.
a.​​Assuming that in addition to the dividend income the corporation has gross income from operations of $250,000 and deductible operating expenses of $210,000, calculate the amount of the corporation's dividends received deduction for 2014.
b.​​If, instead of $250,000 in gross income from operations, the corporation has $200,000 in gross income from operations and the same amount of dividends and expenses, calculate the amount of the corporation's dividends received deduction for 2014.

Quizplus · Accepted Answer

The Answer of During 2014, the Melaleuca Corporation received dividends from 50-percent-owned domestic corporations in the amount of $100,000.
a.​​Assuming that in addition to the dividend income the corporation has gross income from operations of $250,000 and deductible operating expenses of $210,000, calculate the amount of the corporation's dividends received deduction for 2014.
b.​​If, instead of $250,000 in gross income from operations, the corporation has $200,000 in gross income from operations and the same amount of dividends and expenses, calculate the amount of the corporation's dividends received deduction for 2014.

During 2014, the Melaleuca Corporation Received Dividends from 50-Percent-Owned Domestic