Palmquist Corporation and Its 80%-Owned Subsidiary,Sadler Corporation,are Members of an Affiliated

question 38

Multiple Choice

Palmquist Corporation and its 80%-owned subsidiary,Sadler Corporation,are members of an affiliated group.They do not file consolidated tax returns.Sadler had $3,000,000 of income and paid $1,000,000 dividends in 2014.Palmquist and Sadler had 35% income tax rates.What amount of Sadler's dividends is taxable to Palmquist in 2014?

• A)$0
• B)$70,000
• C)$160,000
• D)$200,000

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Definitions:

Slave Trade

The historical trade of enslaved people, particularly across the Atlantic Ocean from Africa to the Americas, that peaked in the 17th to 19th centuries, involving millions of Africans being forcibly transported and sold.

Independent Treasury Bill

Legislation passed in 1840 and later in 1846 establishing a system where the U.S. government managed its own funds independently of private banks, storing money in Treasury buildings.

Economic Crisis

A situation characterized by a significant decline in the economy of a country or globally, leading to a decrease in consumer wealth, business failures, and increased unemployment.

Central Treasury

A central department or facility responsible for managing the government's revenue, money, and financial policies.