In its current taxable year, Auburn Corporation (a calendar year taxpayer), incurs the following income and expenses. $$\begin{array} { l r }
\text { Gross income from operations } & \$ 1,000,000 \
\text { Expenses from operations } & 1,100,000 \
\text { Dividends from Blond Corporation } & 200,000
\end{array}$$ Auburn Corporation owns 20% of the stock in Blond Corporation.The dividends received deduction for 2019 is:

Question

In its current taxable year, Auburn Corporation (a calendar year taxpayer), incurs the following income and expenses. $$\begin{array} { l r } 
\text { Gross income from operations } & \$ 1,000,000 \
\text { Expenses from operations } & 1,100,000 \
\text { Dividends from Blond Corporation } & 200,000
\end{array}$$ Auburn Corporation owns 20% of the stock in Blond Corporation.The dividends received deduction for 2019 is:

Quizplus · Accepted Answer

The dividends received deduction for dividends received from a 20% owned domestic corporation is 65% (20% x 65% = 13%) of the amount received or $130,000 (20% x $650,000).

In Its Current Taxable Year, Auburn Corporation (A Calendar Year