AB Inc Received a Dividend from CD Corporation and Is Able

question 48

Short Answer

AB Inc. received a dividend from CD Corporation and is able to claim a dividends received deduction without limitation. AB owns 10 percent of CD. What is AB's marginal tax rate (to the nearest tenth of a percent) on the dividends received (after taking the DRD into account)?

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Definitions:

Inherent Value

The intrinsic worth or importance of something, recognized as an essential or fundamental quality.

Social Workers

Professionals trained to provide support and services to individuals, families, and communities dealing with personal and social issues, employing a variety of methods tailored to the client's needs.

Cardinal Values

Fundamental values that are considered primary or paramount in guiding ethical behavior and decision making.

Acceptance

The act of receiving or taking something offered or recognizing the reality of a situation without attempting to change it or protest.