Orange Corporation owns stock in White Corporation and has net operating income of $400,000 for the year.White Corporation pays Orange a dividend of $60,000.What amount of dividends received deduction may Orange claim if it owns 45% of White stock (assuming Orange's dividends received deduction is not limited by its taxable income)?
A)$27,000
B)$42,000
C)$48,000
D)$60,000
E)None of the above

Question

Quizplus · Accepted Answer

The Answer of Orange Corporation owns stock in White Corporation and has net operating income of $400,000 for the year.White Corporation pays Orange a dividend of $60,000.What amount of dividends received deduction may Orange claim if it owns 45% of White stock (assuming Orange's dividends received deduction is not limited by its taxable income)?
A)$27,000
B)$42,000
C)$48,000
D)$60,000
E)None of the above

Orange Corporation Owns Stock in White Corporation and Has Net