Jazz Corporation owns 10 percent of the Mitchell Corporation stock. Mitchell distributed a $10,000 dividend to Jazz Corporation. Jazz Corporations taxable income (loss)before the dividend income was ($2,000). What is the amount of Jazz's dividends received deduction on the dividend it received from Mitchell Corporation?

Question

Quizplus · Accepted Answer

The dividends received deduction is 50% of the dividend received. 50% x $10,000 = $5,000.

Jazz Corporation Owns 10 Percent of the Mitchell Corporation Stock