Caren Corp., licensed by the Small Business Administration as a small business investment company, has net income before the dividends received deduction of $$40,000$ for the current year. This includes $$30,000$ of dividends from Multinet Corporation. Caren owns $10\%$ of Multinet Corporation. Caren files a statement with its current year's income tax return that it was a federal licensee under the Small Business Investment Act of $1958$ when the dividend was received. How much is the allowed dividends received deduction under IRC Sec. $243($a$)(2)?$

  

Answer rating: 100% (QA)

Calculate the Dividends Received Deduction Total dividends received from Multinet Corp... View the full answer