If a Corporation Owns Less Than 20% of the Stock

question 110

True/False

If a corporation owns less than 20% of the stock of the distributing corporation,the dividends-received deduction is not allowed for the recipient corporation.

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Definitions:

Durable Goods

Goods not for immediate consumption and able to be kept for an extended period, such as appliances, cars, and furniture.

Hotel Stay

A period of time in which an individual rents a room or suite in a hotel for temporary accommodation.

Personal Selling

A sales method involving direct face-to-face interaction between a salesperson and a prospective buyer to persuade the buyer to make a purchase.

Coffeemaker

A kitchen appliance used for brewing coffee by automatically heating water and directing it over ground coffee beans.