No Dividends Received Deduction Is Allowed Unless the Corporation Has

question 79

True/False

No dividends received deduction is allowed unless the corporation has held the stock for more than 90 days.

---

Definitions:

Par Common Stock

The face value of common stock as stated in the corporate charter, which is the minimum amount at which shares can initially be sold.

Par Preferred Stock

A type of preferred stock that is issued at its nominal or face value, and typically has a fixed dividend rate.

Debit to Cash

An accounting entry that increases the cash balance in a company's books.

Paid-In Capital

The total amount of money investors have contributed to a company in exchange for equity.