Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of $160,000 for 2019. The
Question:
Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of $160,000 for 2019. The corporation also has $30,000 in dividends from publicly traded domestic corporations in which the ownership percentage was 45 percent.
a. Calculate the corporation’s dividends received deduction for 2019.
b. Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $135,000. Calculate the corporation’s dividends received deduction for 2019.
c. Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $158,000. Calculate the corporation’s dividends received deduction for 2019.
Step by Step Answer:
Income Tax Fundamentals 2020
ISBN: 9780357108239
38th Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven Gill