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

Question

Quizplus · Accepted Answer

The dividends received deduction is 70% of the dividend received, which is $10,000 x 70% = $7,000.

Jazz Corporation Owns 10% of the Williams Corp