Jazz Corporation owns 50% of the Williams Corp. stock. Williams distributed a $10,000 dividend to Jazz Corporation. Jazz Corp.'s taxable income before the dividend was $100,000. What is the amount of Jazz's dividends received deduction on the dividend it received from Williams Corp.?

Question

Quizplus · Accepted Answer

Because Jazz owns more than 20% and less than 80% of the Williams stock, it is entitled to a 65% dividends received deduction ($10,000 × 65%).

Jazz Corporation Owns 50% of the Williams Corp