Corporation A owns 15 percent of the stock of corporation B. Corporation B pays corporation A$100,000 in dividends in 2002. Corporation A must pay tax on

Question

Quizplus · Accepted Answer

Because Corporation A owns less than 20 percent of the stock of Corporation B, it qualifies for the dividends received deduction under the tax law. Therefore, Corporation A does not have to pay tax on the $100,000 in dividends received from Corporation B.

Corporation a Owns 15 Percent of the Stock of Corporation