The F.Repens Corporation has taxable income of $250,000 for the current year,including dividends of $60,000 received from 30 percent-owned domestic corporations.How much is the F.Repens Corporation's dividends received deduction for the current year?

Question

Quizplus · Accepted Answer

The dividends received deduction is calculated based on the percentage of ownership in the corporation paying the dividend. In this case, F.Repens Corporation only owns 30% of the domestic corporation paying the $60,000 dividend, so its dividends received deduction would be $60,000 x 30% = $18,000. Therefore, the total taxable income for F.Repens Corporation would be $250,000 - $18,000 = $232,000.

The FRepens Corporation Has Taxable Income of $250,000 for the Current