For Ownership Interest of Less Than 20%, the Parent May

question 23

Multiple Choice

For ownership interest of less than 20%, the parent may exclude how much of the dividends received from its reported income when filing separately?

• A)​100%
• B)​80%
• C)​70%
• D)​20%

---

Definitions:

Compounded Options

A financial derivative instrument that contains an option that itself has a feature making its payoff at least partially dependent on the future level of interest rates.

GICs

A kind of investment in Canada known as Guaranteed Investment Certificates that provide a promised return rate for a specified duration.

Nominal Annual Rates

The stated annual interest rate of a loan or investment, not accounting for compounding within the year.

Compounded Semiannually

The process where interest is calculated and added to the principal sum of a loan or deposit twice a year, leading to interest on interest.