This year, Sonoma Corporation received the following dividends:
Alpha, Inc. (a taxable Florida corporation in which Sonoma owns a 5% stock interest) $ 30,000
Beta, Inc. (a taxable Mexican corporation in which Sonoma owns a 25% stock interest) 20,000
Gamma, Inc. (a taxable Texas corporation in which Sonoma owns a 50% stock interest) 50,000
Before considering the above dividends, Sonoma has taxable income of $550,000. Calculate Sonoma's allowable dividends-received deduction and taxable income.

Question

This year, Sonoma Corporation received the following dividends:
Alpha, Inc. (a taxable Florida corporation in which Sonoma owns a 5% stock interest) $ 30,000 
Beta, Inc. (a taxable Mexican corporation in which Sonoma owns a 25% stock interest) 20,000 
Gamma, Inc. (a taxable Texas corporation in which Sonoma owns a 50% stock interest) 50,000 
Before considering the above dividends, Sonoma has taxable income of $550,000. Calculate Sonoma's allowable dividends-received deduction and taxable income.

Quizplus · Accepted Answer

The Answer of This year, Sonoma Corporation received the following dividends:
Alpha, Inc. (a taxable Florida corporation in which Sonoma owns a 5% stock interest) $ 30,000 
Beta, Inc. (a taxable Mexican corporation in which Sonoma owns a 25% stock interest) 20,000 
Gamma, Inc. (a taxable Texas corporation in which Sonoma owns a 50% stock interest) 50,000 
Before considering the above dividends, Sonoma has taxable income of $550,000. Calculate Sonoma's allowable dividends-received deduction and taxable income.

This Year, Sonoma Corporation Received the Following Dividends