Assume Corporation A owns 51% of Corporation B. If Corporation A received $1,000,000 in dividends from Corporation B, how much would be taxable to Corporation A?

Question

Quizplus · Accepted Answer

Corporation A owns more than 20% of Corporation B, so it qualifies for an 80% dividends received deduction. Therefore, 20% of the $1,000,000 dividend, which is $200,000, would be taxable to Corporation A.

Assume Corporation a Owns 51% of Corporation B