During the current year,Mars Corporation receives dividend income of $20,000 from an 85%-owned domestic corporation.What is Mars' maximum allowable dividend-received deduction for the current year?
A)$- 0 -
B)$14,000
C)$16,000
D)$18,000
E)$20,000

Question

Quizplus · Accepted Answer

Mars Corporation can claim a 100% dividend-received deduction for dividends received from an 80% or more owned domestic corporation, so the maximum allowable deduction is $20,000.

During the Current Year,Mars Corporation Receives Dividend Income of $20,000