Roadrunner Corporation receives a dividend on its stock investment in General Electric Corporation. If Roadrunner is an

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Roadrunner Corporation receives a dividend on its stock investment in General Electric Corporation. If Roadrunner is an S corporation, it cannot claim a dividends received deduction on the GE dividend. Therefore, the GE dividend will be subject to triple taxation. Comment on the accuracy of this last statement.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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South Western Federal Taxation Individual Income Taxes 2017

ISBN: 9781305873988

40th Edition

Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young, Nellen

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