Identify Which of the Following Statements Is True

question 56

Multiple Choice

Identify which of the following statements is true.

• A)P Corporation receives a dividend from its 100%-owned subsidiary corporation S. P and S have filed consolidated tax returns for a number of years. The dividend payment is out of S's earnings and profits and reduces P's investment in S. The dividend is an intercompany transaction and excluded from P's gross income.
• B)The consolidated dividends-received deduction percentage for dividends received by one affiliated group member from another affiliated group member is always 100%.
• C)The dividends-received deduction claimed when a $50,000 dividend is received from a 100%-owned nonconsolidated life insurance company is $35,000 (ignoring any dividends-received deduction limitations).
• D)All of the above are false.

---

Definitions:

Sociological Wonder

The capacity to be amazed or intrigued by the complexities and nuances of social life and human interaction within society.

Physicality

The quality or aspect of being physical or bodily, often emphasizing the tangible, material, or corporeal nature of something.

Peter Paul Rubens

A prominent Flemish painter of the early 17th century, known for his Baroque style and exuberant compositions.

Seventeenth Century

The period from the year 1601 to 1700 in the Gregorian calendar, a time marked by significant cultural, scientific, and political developments.