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:

Perched Water

Groundwater that sits above the main water table and generally is underlain by a layer or lens of impermeable rock that blocks the downward flow of groundwater.

Water Table

The level below which the ground is saturated with water, marking the boundary between the unsaturated zone above and the saturated zone below.

Groundwater

Water that occupies the pores and fractures in underground rock and soil, a critical source of freshwater for drinking, agriculture, and industry.

Spring

A place where groundwater flows out of the ground onto the surface.