Copper Corporation owns stock in Bronze Corporation and has net operating income of $900,000 for the year.Bronze Corporation pays Copper a dividend of $150,000.What amount of dividends received deduction may Copper claim if it owns 85% of Bronze stock (assuming Copper's dividends received deduction is not limited by its taxable income)?
A)$97,500
B)$105,000
C)$120,000
D)$150,000
E)None of the above

Question

Quizplus · Accepted Answer

Copper Corporation can claim a dividends received deduction of 100% of the dividend amount because it owns 85% of Bronze Corporation, which qualifies for the 100% deduction under the tax code for dividends received from a corporation in which it owns 80% or more.

Copper Corporation Owns Stock in Bronze Corporation and Has Net