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Which of the Following Statements Regarding Dividends And/or the Dividends

Question 90

Multiple Choice

Which of the following statements regarding dividends and/or the dividends received deduction (DRD) is true?


A) Dividends received by corporations are taxed at a lower tax rate than ordinary income.
B) The DRD can increase the net operating loss of a corporation.
C) Corporations are allowed to deduct from a dividend received, the product of the dividend and the percentage of the receiving corporation's ownership in the distributing corporation's stock.
D) The DRD allows corporations to deduct the amount of dividends that they distribute.

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