During the current year, Campbell Corporation receives dividend income of $40,000 from a 5%-owned domestic corporation. What is Campbell's maximum allowable dividend-received deduction for the current year?
A)$- 0 -
B)$20,000
C)$26,000
D)$28,000
E)$40,000

Question

Quizplus · Accepted Answer

Campbell Corporation can claim a 50% dividend-received deduction on dividends from a less-than-20%-owned domestic corporation, which is $20,000 (50% of $40,000).

During the Current Year, Campbell Corporation Receives Dividend Income of $40,000