West Corporation Purchases 50 Shares (Less Than 1%)of Perch Corporation

question 85

Multiple Choice

West Corporation purchases 50 shares (less than 1%) of Perch Corporation common stock on April 3. The ex-dividend date is April 4. West Corporation pays $50,000 for the stock and receives a dividend of $5,000 on the Perch stock. On May 1, West Corporation sells the Perch stock for $45,000. West's taxable income before the dividends-received deduction is $4,000. West's dividends-received deduction is

• A)$3,500.
• B)$3,200.
• C)$2,800.
• D)$0.

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Definitions:

Repressors

Proteins that bind to specific DNA sequences and inhibit the transcription of genes, playing a crucial role in gene regulation.

Inducers

Substances that increase the rate of enzyme activity or gene expression.

Missense Mutation

A type of genetic mutation where a single nucleotide change results in the coding of a different amino acid, potentially altering protein function.

Lac Operon

The lac operon is a segment of DNA found in bacteria that consists of genes necessary for metabolizing lactose, serving as a classic example of gene regulation.