June Corporation has the following income and expense items during the current year: $$\begin{array} { |l | r| }
\hline \text { Net loss from operations } & ( \$ 140,000) \
\hline \text { Dividends received } 25 \% \text { owned corporations } & 240,000 \
\hline
\end{array}$$ The allowed dividends-received deduction is

Question

June Corporation has the following income and expense items during the current year: $$\begin{array} { |l | r| } 
\hline \text { Net loss from operations } & ( \$ 140,000) \
\hline \text { Dividends received } 25 \% \text { owned corporations } & 240,000 \
\hline
\end{array}$$ The allowed dividends-received deduction is

Quizplus · Accepted Answer

The dividends-received deduction for a corporation owning 25% of another corporation is 65% of the dividends received. Therefore, the deduction is 65% of $240,000, which equals $156,000.

June Corporation Has the Following Income and Expense Items During