Orange Corporation, a Calendar Year C Corporation, Owns Stock in White

question 103

Multiple Choice

Orange Corporation, a calendar year C corporation, owns stock in White Corporation and has net operating income of $400,000 for the current year. White Corporation pays Orange a dividend of $60,000. What amount of dividends received deduction may Orange claim if it owns 45% of White stock (assuming Orange's dividends received deduction is not limited by its taxable income) ?

• A) $30,000
• B) $39,000
• C) $42,000
• D) $60,000
• E) None of these.

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Definitions:

Degrees of Freedom

The number of independent values or quantities which can vary in the calculation of a statistic.

Critical Value of F

The threshold value determined from an F-distribution, given a certain significance level, used in analysis of variance (ANOVA) to decide whether to reject the null hypothesis of equal variances.

Predictor Variables

Variables in a statistical model that are used to predict or explain changes in the response variable.

Value

Refers to the importance, worth, or usefulness of something, often determined by its desirability, utility, or contribution to achieving a goal.