Parent and Subsidiary Corporations Are Members of an Affiliated Group

question 20

Essay

Parent and Subsidiary Corporations are members of an affiliated group. Their separate taxable incomes (before taking into account any dividends)are $75,000 and $85,000, respectively. Subsidiary Corporation receives a dividend from a less-than-20%-owned corporation of $8,000 and from an affiliated 100%-owned nonconsolidated insurance subsidiary of $40,000. Subsidiary distributes a dividend of $35,000 to Parent Corporation who also receives dividends of $6,000 from a less-than-20%-owned corporation. The consolidated dividends-received deduction is what?

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Definitions:

Stanford-Binet Intelligence Scale

A standardized test that assesses intelligence and cognitive abilities in children and adults.

Mental Abilities

The range of cognitive functions including memory, perception, problem-solving, and intellectual skills.

Practical Intelligence

Refers to the ability to solve everyday problems by utilizing knowledge gained from experience, as opposed to theoretical or abstract knowledge.

Solutions

Homogeneous mixtures composed of two or more substances in which the molecules are evenly distributed.