Parent and Subsidiary Corporations are members of an affiliated group. Their separate taxable incomes (before taking into account any dividends)are $75,000 and $85,000, respectively. Subsidiary Corporation receives a dividend from a less-than-20%-owned corporation of $8,000 and from an affiliated 100%-owned nonconsolidated insurance subsidiary of $40,000. Subsidiary distributes a dividend of $35,000 to Parent Corporation who also receives dividends of $6,000 from a less-than-20%-owned corporation. The consolidated dividends-received deduction is what?

Question

Quizplus · Accepted Answer

The Answer of Parent and Subsidiary Corporations are members of an affiliated group. Their separate taxable incomes (before taking into account any dividends)are $75,000 and $85,000, respectively. Subsidiary Corporation receives a dividend from a less-than-20%-owned corporation of $8,000 and from an affiliated 100%-owned nonconsolidated insurance subsidiary of $40,000. Subsidiary distributes a dividend of $35,000 to Parent Corporation who also receives dividends of $6,000 from a less-than-20%-owned corporation. The consolidated dividends-received deduction is what?

Parent and Subsidiary Corporations Are Members of an Affiliated Group