Which of the Following Statements Is Incorrect Regarding the Dividends

question 104

Multiple Choice

Which of the following statements is incorrect regarding the dividends received deduction?

• A) A corporation must hold stock for more than 90 days in order to qualify for a deduction with respect to dividends on such stock.
• B) The taxable income limitation does not apply with respect to the 100% deduction available to members of an affiliated group.
• C) If a stock purchase is financed 75% by debt, the deduction for dividends on such stock is reduced by 75%.
• D) The taxable income limitation does not apply if the normal deduction (i.e., 50% or 65% of dividends) results in a net operating loss for the corporation.
• E) None of these.

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Definitions:

DLCs

Stands for Downloadable Content, additional content created for an already released video game, distributed through the internet.

J1939 Data Bus

A communications network used in heavy-duty vehicles and buses for the exchange of electronic information between control units.

MY 2014

Refers to the model year 2014, a designation used by automobile manufacturers to identify the annual version of a vehicle.

Smart Switch

Usually refers to a ladder switch but also may refer to either a PLC or switch with independent processing capability.