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Jason and Jon Corporations Are Members of an Affiliated Group

question 54

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Jason and Jon Corporations are members of an affiliated group whose taxable incomes (before dividends)are $90,000 and $100,000, respectively. Jason Corporation owns all of the Jon stock. Jon Corporation received a dividend from a less-than-20%-owned corporation of $10,000 and $25,000 from a 100%-owned nonconsolidated insurance company. Jon Corporation distributed a $40,000 dividend to Jason Corporation. Jason Corporation also received dividends from a 25%-owned corporation of $20,000. The consolidated dividends-received deduction for federal income tax purposes is what?


Definitions:

Discount Sale

A sales promotion technique where products or services are sold at a price lower than their original price to stimulate demand.

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