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?

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Definitions:

Chemical Test Strip

Chemical test strips are small pieces of paper or material that change color when exposed to certain chemical compounds, used for testing and measuring the presence or concentration of specific substances.

"QNS"

Stands for "Quantity Not Sufficient", indicating that a sample size is inadequate for testing or analysis.

"CMA"

Can refer to a Certified Management Accountant, a professional certification for accountants and financial professionals in business.

Certificate Of Waiver

A document that exempts the holder from having to comply with certain regulations or requirements, often in a healthcare or regulatory context.