AB Increceived a Dividend from CD Corporation and Is Able to to Claim

question 132

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)assuming its ordinary marginal tax rate is 34%?

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Definitions:

Direction Of Rotation

Direction of rotation refers to the clockwise or counterclockwise movement of a mechanical component, such as a motor shaft or wheel.

DCM Voltage

Direct Current Motor Voltage; refers to the electrical potential required to power a direct current motor.

Electronic Circuitry

The interconnected arrangement of electronic components, such as resistors, capacitors, and transistors, that perform a specific function.

Control Voltage

The electrical potential used to power and operate the control circuits of larger electrical systems, typically lower than power circuit voltages.