Corporation A receives a dividend from Corporation B. Corporation A includes the dividend in its gross income
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Question:
Corporation A receives a dividend from Corporation B. Corporation A includes the dividend in its gross income for tax and financial accounting purposes (no book-tax difference). If A has accounted for the dividend correctly (following the general rule), how much of B stock does A own?
A. A owns less than 20 percent of the stock of B.
B. A owns at least 20 percent but not more than 50 percent of the stock of B.
C. A owns more than 50 percent of the stock of B.
D. Cannot be determined.
Related Book For
Canadian Income Taxation planning and decision making
ISBN: 9781259094330
17th edition 2014-2015 version
Authors: Joan Kitunen, William Buckwold
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