ABC Ltd. receives $12,000 in dividends from a non-connected corporation, Telus Corp. Which of the following is INCORRECT?
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ABC Ltd. receives $12,000 in dividends from a non-connected corporation, Telus Corp. Which of the following is INCORRECT?
a. ABC Ltd. owns more than 10% of the shares of Telus Corp.
b. Part IV Tax Payable = $4,600.
c. Dividends from non-connected corporations like Telus Corp. are often referred to as portfolio dividends.
d. ABC Ltd. owns less than 10% of the shares of Telus Corp.
e. Dividends from non-connected corporations are always subject to Part IV tax payable.
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- Genny, Inc. received $80,000 in dividends during 2007 from its stock investment in Cary Company. How much of the dividends are excluded from Genny's taxable income? Select one: a. $56,000 b. $24,000 C. $80,000 d. NoneX Corporation was formed in Year 1. In Year 1, X Corporation: (i) received $100,000 of revenue, (ii) a $20,000 dividend distribution from Y Corporation (X owned less than 1% of Y and received a $10,000 DRD) (iii) purchased a Section 179 asset for $10,000, (iv) paid $21,000 of federal tax and (v) distributed $10,000 cash to each of its two shareholders A and B. In Year 2, X received $50,000 of revenue and contributed $12,000 to cash to a qualified charity. X made no distributions in Year 2. a. What is X' Accumulated E&P at the beginning of Year 2? (Write your answer as a number only, i.e. $5,000) b. What is X' Accumulated E&P at the beginning of Year 3? (Write your answer as a number only, i.e. $12,000)During its first year of operation, K Corporation had a gross profit from operations of $180,000 anddeductions of $250,000 before considering its dividend income or dividends-received deduction. K received dividends of $50,000 from a taxable domestic corporation in which K owned 4.5 percent of the stock.Assuming its ownership of the dividend-paying corporation’s stock is not debt financed, what is K Corporation’s net operating loss for the year? A. 20,000 B. 49,000 C. 45,000 D. 65,000 E. 70,000
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