Identify Which of the Following Statements Is False

question 51

Multiple Choice

Identify which of the following statements is false.

• A)The 70% dividends-received deduction is limited to 70% of the taxable income of the corporation without regard to any NOL deduction,any capital loss carryback,and the dividends-received deduction itself unless the dividends-received deduction produces an NOL.
• B)Members of an affiliated group can claim a 90% dividends-received deduction for dividends received from other group members that is not subject to a taxable income limitation.
• C)A corporate dividends-received deduction is not allowed for dividends received on stock held for 40 days.
• D)All of the above are false.

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Definitions:

Capital Stock

Reflects the amount of equity financing a company has generated through the sale of its shares to investors.

Financing Activities

Transactions and events whereby resources are obtained from, or repaid to, owners (equity financing) or creditors (debt financing).

Statement Of Cash Flows

A financial report showing the inflows and outflows of cash within a company over a specific period.

Net Income

The final amount a company earns after removing all outgoings and tax liabilities from its total income.