Copper Corporation, a Calendar Year C Corporation, Owns Stock in Bronze

question 78

Multiple Choice

Copper Corporation, a calendar year C corporation, owns stock in Bronze Corporation and has net operating income of $900,000 for the current year. Bronze Corporation pays Copper a dividend of $150,000. What amount of dividends received deduction may Copper claim if it owns 85% of Bronze stock (and the two corporations are members of the same affiliated group) ? (Assume Copper's dividends received deduction is not limited by its taxable income.)

• A) $75,000
• B) $97,500
• C) $120,000
• D) $150,000
• E) None of these.

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Definitions:

Ghrelin

A hormone produced by the stomach that stimulates hunger and food intake, playing a significant role in body weight and metabolism.

Hunger-triggering

Prompting or causing a sensation of the need to eat.

Ventromedial Hypothalamus

A region of the brain involved in satiety, regulating hunger, and aiding in the metabolism of glucose and fats.

Lateral Hypothalamus

A region of the brain involved in hunger and thirst regulation.