Tippecanoe Corporation has the following income and expense items during the current year: Net income from operations $60,000 Dividend income from 10% owned corporation 180,000 What is Tippecanoe 's dividends-received deduction?
A) $42,000
B) $126,000
C) $144,000
D) $168,000
E) $192,000

Question

Quizplus · Accepted Answer

The dividends-received deduction for a corporation owning less than 20% of another corporation is 70% of the dividend income. Therefore, 70% of $180,000 is $126,000.

Tippecanoe Corporation Has the Following Income and Expense Items During