Crane and Loon corporations, two unrelated C corporations, have the following transactions for the current year.
|
Click here to access the dividends received deduction table.
a. Compute the dividends received deduction for
Crane Corporation.
$........................
b. Compute the dividends received deduction for
Loon Corporation.
$........................
Answer | |
Explanation : | |
a) | Crane Corporation : |
Dividend less than 15% take 50% | |
= $170,100 * 50% | |
= $85,050 | |
= $283,500 - $396,900 + $170,100 | |
= $56,700 | |
= $56,700 - $170,100*50% = $-28,350 | |
So, Dividend received deduction for crane corporation is $85,050 | |
b) | Loon Corporation : |
$317,520*50% = $158,520 | |
= $453,600 - $476,280 + $340,200 | |
= $317,520 | |
So, Dividend received deduction for Loon corporation is $158,520 |
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