Jenkins Corporation has the following income and expense items during the current year: The allowed dividends-received deduction is

Question

Jenkins Corporation has the following income and expense items during the current year:  The allowed dividends-received deduction is

Quizplus · Accepted Answer

A)Preliminary Computation:
 11ea7cb8_54c1_b8d9_928c_6be9c4e46282_TB1258_00 The dividends-received deduction under the general rule is $120,000 (.80 × $150,000).The DRD limitation on taxable income before the dividends-received deduction is 80% × $125,000 = $100,000.Thus,the dividends-received deduction is limited to $100,000.

Jenkins Corporation Has the Following Income and Expense Items During