ABC Owns 15 Percent of XYZ Corporation

ABC owns 15 percent of XYZ Corporation.What tax benefit does ABC derive from this situation?

A) ABC receives no tax benefit but XYZ is only taxed on 30 percent of its net income.
B) ABC benefits because it is able to treat any XYZ dividends it receives as interest income.
C) Fifty percent of the dividends paid by XYZ to ABC is exempt from income taxes.
D) ABC can exclude 30 percent of any XYZ dividends received from its taxable income.
E) All dividend income ABC receives from XYZ is tax-exempt.