West Corporation purchases 50 shares (less than 1%) of Perch Corporation common stock on April 3. The ex- dividend date is April 4. West Corporation pays $50,000 for the stock and receives a dividend of $5,000 on the Perch stock. On May 1, West Corporation sells the Perch stock for
$45,000. West's taxable income before the dividends- received deduction is $4,000. West's dividends- received deduction is

Question

Quizplus · Accepted Answer

West Corporation does not qualify for the dividends-received deduction because it held the stock for less than 46 days during the 91-day period beginning 45 days before the ex-dividend date.

West Corporation Purchases 50 Shares (Less Than 1%) of Perch