Parent and Subsidiary Corporations Are Members of an Affiliated Group

question 44

Essay

Parent and Subsidiary Corporations are members of an affiliated group.Their separate taxable incomes (before taking into account any dividends)are $75,000 and $85,000,respectively.Subsidiary Corporation receives a dividend from a less-than-20%-owned corporation of $7,500 and from an affiliated 100%-owned nonconsolidated insurance subsidiary of $40,000.Subsidiary distributes a dividend of $35,000 to Parent Corporation who also receives dividends of $5,500 from a less-than-20%-owned corporation.The consolidated dividends-received deduction is what?

---

Definitions:

Hydrochloric Acid

A strong, corrosive acid found in the gastric juices of the stomach that aids in digestion and kills microbes.

Smooth Muscle

Nonstriated, involuntary muscle found in the walls of internal organs.

Binge-Eating Disorder

Binge-eating disorder is characterized by recurrent episodes of eating large quantities of food, a lack of control during the binges, and feelings of shame or guilt afterwards.

Depressed

A state characterized by feelings of severe despondency and dejection, often a symptom of a psychological disorder.