Sunrise Corporation Owns 30% of Sunset Corporation

question 25

Multiple Choice

Sunrise Corporation owns 30% of Sunset Corporation.Both are domestic corporations.Sunset pays a $10,000 dividend to Sunrise.What amount of dividend income will be included in the taxable income of Sunrise Corporation?

• A)$2,000.
• B)$3,000.
• C)$8,000.
• D)$10,000.

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Definitions:

Phosphorylate

The process of introducing a phosphate group into an organic molecule, often to activate or deactivate proteins and enzymes in cells.

ADP

Short for Adenosine Diphosphate, it is a nucleotide involved in energy transfer within cells.

Nutrients

Essential substances that organisms must obtain from their diet to maintain healthy growth and bodily functions.

Chemicals

Substances with a specific molecular composition used in or produced by chemical processes.