Copper Corporation owns stock in Bronze Corporation and has net operating income of $600,000 for the year.Bronze Corporation pays Copper a dividend of $200,000.What amount of dividends received deduction may Copper claim if it owns 95% of Bronze stock (assuming Copper's dividends received deduction is not limited by its taxable income)?
A)$0.
B)$140,000.
C)$160,000.
D)$190,000.
E)None of the above.

Question

Quizplus · Accepted Answer

The dividends received deduction depends upon the percentage of ownership by the corporate shareholder.If Copper Corporation owns 95% of Bronze Corporation,Copper would qualify for a 100% deduction,or $200,000 in this case.

Copper Corporation Owns Stock in Bronze Corporation and Has Net