In the current year,Mockingbird Corporation (a calendar year taxpayer)has the following income and expenses:
Gross income from operations
$1,900,000
Expenses from operations
2,000,000
Dividends from Hummingbird Corporation
400,000

Mockingbird Corporation owns 10% of the stock of Hummingbird Corporation.The dividends received deduction for the current year is:

Question

In the current year,Mockingbird Corporation (a calendar year taxpayer)has the following income and expenses:
Gross income from operations
$1,900,000
Expenses from operations
2,000,000
Dividends from Hummingbird Corporation
400,000
​
Mockingbird Corporation owns 10% of the stock of Hummingbird Corporation.The dividends received deduction for the current year is:

Quizplus · Accepted Answer

The dividends received deduction for a corporation that owns less than 20% of the stock of another corporation is 70%. Therefore, the dividends received deduction for Mockingbird Corporation is $400,000 x 70% = $280,000.

In the Current Year,Mockingbird Corporation (A Calendar Year Taxpayer)has the Following