In 2020, Able Corporation purchased a portfolio of stocks for 100,000. It paid cash of 40,000 and borrowed 60,000 to finance the purchase. In 2021, Able receives dividend income of 10,000, all from less-than-20% owned corporations. What is Able's dividends received deduction for 2021? Explain.

Answer rating: 100% (QA)

The dividends received deduction DRD is a provision in the tax code that allows corporations to excl... View the full answer