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Is There a Logical Explanation Why S Corporations Are Not

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Essay

Is there a logical explanation why S corporations are not allowed a dividends received deduction when computing taxable income?


Definitions:

Gross Profit

The difference between revenue and the cost of goods sold, indicating the basic profitability of a company's core activities.

Aging of Accounts Receivable

A report or method that categorizes a company's accounts receivable according to the length of time an invoice has been outstanding.

Bad Debt Expense

An expense recorded to account for receivables that are expected not to be collected.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services that have been delivered or used but not yet paid for.

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