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Corporations May Deduct 80% of Dividends Received from a Domestic

question 82

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Corporations may deduct 80% of dividends received from a domestic corporation if the recipient corporation owns 20% or more and less than 80% of the voting power and value of the stock of the issuing corporation.


Definitions:

Consignor

The name for the manufacturer in a consigned inventory arrangement.

Consignment

An arrangement in which goods are left in the possession of another party to sell, but the consignor retains ownership until the goods are sold.

Net Realizable Value

The estimated selling price of an asset in the ordinary course of business minus any costs of completion, transportation, and necessary selling expenses.

Direct Costs of Disposal

The expenses directly linked to the process of disposing of an asset, including sales fees and legal costs.

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