Fallon Inc

question 14

Multiple Choice

Fallon Inc., a U.S. corporation, owns stock in several foreign corporations. This year, Fallon received $420,000 as a dividend from Mars Corporation, and $225,000 as a dividend from Jupiter Inc. Mars is a foreign corporation in which Fallon has owned 8 percent of the outstanding stock for ten years. Jupiter is a foreign corporation in which Fallon has owned 17 percent of the outstanding stock for two years. Compute Fallon's allowable dividends-received deduction for these foreign dividends.

• A) $420,000
• B) $225,000
• C) $665,000
• D) $0

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Definitions:

Materials

Raw inputs or basic substances used in the manufacturing or production process to create finished goods.

Materials Requisition

The document or electronic request used within a company to authorize the withdrawal of materials from inventory for use in the production process or other internal use.

Purchase Requisition

A document generated by a user or department within a company to request the purchase of specific goods or services.

Receiving Report

A document used to record the receipt of goods at the receiving dock of a company, providing details on the shipment received, including quantity and condition.