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.

Answer rating: 100% (QA)

A owns less than 20 of the stock of B Exp... View the full answer