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Johnny, Inc. had dividend income in 2021 of $1,000,000, comprised of dividends from the following companies:              Neon Corp                                       600,000             Booker, Inc.                                      300,000             Portfolio Companies                           100,000

Johnny, Inc. had dividend income in 2021 of $1,000,000, comprised of dividends from the following companies:              Neon Corp                                       600,000             Booker, Inc.                                      300,000             Portfolio Companies                           100,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Johnny, Inc. had dividend income in 2021 of $1,000,000, comprised of dividends from the following companies:

 

           Neon Corp                                       600,000

            Booker, Inc.                                      300,000

            Portfolio Companies                           100,000

 

Johnny owns 85% of the outstanding stock of Neon, 25% of the stock of Booker and less than 5% of a variety of companies that it holds in its portfolio. What is Johnny's dividends received deduction?

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