During the current year, Mars Corporation receives dividend income of $20,000 from an 85%-owned domestic corporation. What is Mars' maximum allowable dividend-received deduction for the current year?
A)$- 0 -
B)$10,000
C)$13,000
D)$14,000
E)$20,000

Question

Quizplus · Accepted Answer

The maximum allowable dividend-received deduction for a corporation that receives dividend income from a domestic corporation in which it owns more than 80% of the stock is 100% of the dividend received. Therefore, Mars Corporation can deduct the full $20,000.

During the Current Year, Mars Corporation Receives Dividend Income of $20,000