Backus Corporation is a calendar year C-corporation. Backus owns 15% of the stock of another C-corporation....
Backus Corporation is a calendar year C-corporation. Backus owns 15% of the stock of another C-corporation. As a result of this ownership Backus received dividends in 2019 of $150,000. Backus has gross revenues of $550,000 and total expenses of $600,000 in 2019. What is the allowed dividend received deduction that Backus can take on its 2019 return?
a. $50000
b. $75,000
c.$97,500
d. None of the above
Homework Answers
Dividend received deduction of 50% is applicable from less than 20% owned domestic corporations.
Dividend received deduction = $150,000 * 50%
= $75,000
The answer is b.
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Backus Corporation is a calendar year C-corporation. Backus owns
15% of the stock of another C-corporation....
Copper Corporation, a calendar year corporation, owns stock in Bronze Corporation and has net operating income...
Copper Corporation, a calendar year corporation, owns stock in Bronze Corporation and has net operating income of $900,000 for the current 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 (and the two corporations are members of the same affiliated group) (Astume Copper's dividends received deduction is not limited by its taxable income.) a. $120,000 65150,000 c575.000 d. 597,500 De None of these choices...
In the current year, Red Corporation (a calendar year C corporation), which owns stock in Blue...
In the current year, Red Corporation (a calendar year C corporation), which owns stock in Blue Corporation, had net operating income of $200,000 for the year. Blue pays Red a dividend of $40,000. Red takes a dividends received deduction of $20,000. Which of the following statements is correct? a. Red owns 80% of Blue Corporation. b. Red owns 20% or more, but less than 80% of Blue Corporation. c. Red owns 80% or more of Blue Corporation. d. Red owns...
Eagle Corporation, a calendar year corporation, owns stock in Hawk Corporation and has taxable income of...
Eagle Corporation, a calendar year corporation, owns stock in Hawk Corporation and has taxable income of $100,000 for the year before considering the dividends received deduction. In the current year, Hawk Corporation Days Eagle a dividend of $130,000, which was considered in Calculating the $100,000. What amount of dividends received deduction may Eagle daim it it owns 15% of Hawk's stock? a. $50,000 b. 365.000 Oc. so d. $84,500 e. None of these choices are correct
For the year of 2020, Delana Corporation, a calendar year corporation, had the following Income and...
For the year of 2020, Delana Corporation, a calendar year corporation, had the following Income and Expenses: Gross Income (Revenues) From Operations - $600,000; Expenses From Operations - $720,000; Dividends Received (Less than twenty percent (20%) owned domestic corporation) - $180,000. Delana Corporation's Dividend Received Deduction for the year of 2020 will be: $180,000. $ 90,000. $ 60,000. $ 30,000.
In the current year, Red Corporation (a calendar year C corporation), which owns stock in Blue...
In the current year, Red Corporation (a calendar year C corporation), which owns stock in Blue Corporation, had net operating income of $200,000 for the year. Blue pays Red a dividend of $40,000. Red takes a dividends received deduction of $20,000. Which of the following statements is correct? a. Red owns 80% or more of Blue Corporation. b. Red owns 20% or more, but less than 80% of Blue Corporation. c. Red owns less than 20% of Blue Corporation. d....
In 2019, Nighthawk Corporation, a calendar year C corporation, has $5,620,000 of adjusted taxable income and...
In 2019, Nighthawk Corporation, a calendar year C corporation, has $5,620,000 of adjusted taxable income and $168,600 of business interest income. Nighthawk has no floor plan financing interest. The business interest expense for the year is $2,248,000. a. Assume that Nighthawk has average gross receipts for the prior three-year period of $35,200,000. Determine Nighthawk's current-year deduction for business interest. $ b. Assume that Nighthawk has average gross receipts for the prior three-year period of $19,500,000. Determine Nighthawk's current-year deduction for...
Kaspar and Ludger, two unrelated calendar year corporations, have the following transactions for 2019: Kaspar Corporation...
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In each of the following independent situations, determine the dividends received deduction for the calendar year C corp...
In each of the following independent situations, determine the
dividends received deduction for the calendar year C
corporation.
The Rose Corporation owns 15%, Pansy owns 10% and Daffodil owns
55% of the stock in the corporations paying the dividends.
Rose
Corporation
Pansy
Corporation
Daffodil
Corporation
Income from operations
$1,200,000
$1,200,000
$1,200,000
Expenses from operations
(800,000)
(1,300,000)
(1,500,000)
Qualifying dividends
400,000
400,000
400,000
The dividends received deduction for Pansy Corporation is
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Crane and Loon corporations, two unrelated calendar year C corporations, have the following transactions for the...
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Russell Corporation owns stock in Pierce Corporation and has operating income of $150,000 and operating expenses of $200,000 for the year. Pierce Corporation pays Russell a dividend of $100,000. What amount of dividends received deduction may Russell claim if it owns 30% of Pierce stock? $32,500 O $65,000 $50,000 O $25,000
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In the current year, Red Corporation (a calendar year C corporation), which owns stock in Blue Corporation, had net operating income of $200,000 for the year. Blue pays Red a dividend of $40,000. Red takes a dividends received deduction of $20,000. Which of the following statements is correct? a. Red owns 80% or more of Blue Corporation. b. Red owns 20% or more, but less than 80% of Blue Corporation. c. Red owns less than 20% of Blue Corporation. d....
In each of the following independent situations, determine the
dividends received deduction for the calendar year C
corporation.
The Rose Corporation owns 15%, Pansy owns 10% and Daffodil owns
55% of the stock in the corporations paying the dividends.
Rose
Corporation
Pansy
Corporation
Daffodil
Corporation
Income from operations
$1,200,000
$1,200,000
$1,200,000
Expenses from operations
(800,000)
(1,300,000)
(1,500,000)
Qualifying dividends
400,000
400,000
400,000
The dividends received deduction for Pansy Corporation is
EXHIBIT 12.5 Dividends Received Deduction Percentage of Ownership by Corporate...
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