Walnut Corporation owns 60 percent of Teak Corporation, a domestic corporation. During the current year, Walnut Corporation

Question:

Walnut Corporation owns 60 percent of Teak Corporation, a domestic corporation. During the current year, Walnut Corporation received $20,000 in dividends from Teak Corporation. Assuming that Walnut’s taxable income for the current year before the dividends received deduction is $500,000, what is the amount of Walnut’s dividends received deduction for the current year?

a. $10,000

b. $13,000

c. $16,000

d. $20,000

e. None of the above

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...

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