Jazz Corporation Owns 10% of the Williams Corp

question 53

Multiple Choice

Jazz Corporation owns 10% of the Williams Corp. stock. Williams distributed a $10,000 dividend to Jazz Corporation. Jazz Corp.'s taxable income (loss) before the dividend was ($2,000) . What is the amount of Jazz's dividends received deduction on the dividend it received from Williams Corp.?

• A) $7,000.
• B) $8,000.
• C) $0.
• D) $5,600.
• E) None of the choices are correct.

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