A Parent Holding Company Sells Shares in Its Subsidiary Such

question 1

Multiple Choice

A parent holding company sells shares in its subsidiary such that the parent now owns only 65% of the subsidiary and,thus,the tax returns of the parent and its subsidiary can't be consolidated.The parent receives annual dividends from the subsidiary of $2,500,000.If the parent's marginal tax rate is 34% and if the exclusion on intercompany dividends is 70%,what is the effective tax rate on the intercompany dividends,and how much net dividends are received?

• A) 10.2%;$2,245,000
• B) 10.2%;$2,135,000
• C) 23.8%;$1,905,000
• D) 10.2%;$1,750,000
• E) 34.0%;$1,650,000

Understand and apply compound interest formulas to calculate the future value of an investment.

Perform arithmetic operations with fractions and decimals.

Evaluate expressions using the order of operations, including exponentiation.

Perform arithmetic operations with negative numbers.

---

Definitions:

Preset Value

A predetermined number or setting that is used to initiate an action or define a condition in a process or system.

Time Delay

A deliberate pause introduced in a process or system, usually used to ensure proper timing or synchronization between components or operations.

ControlLogix Controller

A type of PLC from Allen-Bradley designed for high-performance control and scalable integration within an automation environment.

TIMER Data Type

A specialized data type in programming used to measure time intervals or delay actions in a precise and controlled way, often used in automation and control applications.