Problem 11-5 (Algorithmic)Special Deductions and Limitations (LO 11.3)Fisafolia Corporation has gross income from operations of $423,000 and operating expenses of $359,550 for 2021. The corporation also has $42,300 in dividends from publicly-traded domestic corporations in which the ownership percentage was 45 percent.Below is the Dividends Received Deduction table to use for this problem. 2021 DividendsPercent OwnershipReceived PercentageLess than 20 percent50%20 percent or more, but less than 80 percent65%80 percent or more100%If require, round final answers to the nearest dollar.a. Calculate the corporation's dividends received deduction for 2021.Feedbackb. Assume that instead of $423,000, Fisafolia Corporation has gross income from operations of $317,250.Calculate the corporation's dividends received deduction for 2021.Feedbackc. Assume that instead of $423,000, Fisafolia Corporation has gross income from operations of $350,000. Calculate the corporation's dividends received deduction for2021.

Dividends are a part of net income that is paid to the shareholder of the company in the form of a…

Answered: Problem 11-5 (Algorithmic) Special…

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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Problem 11-5 (Algorithmic)
Special Deductions and Limitations (LO 11.3)

Fisafolia Corporation has gross income from operations of $423,000 and operating expenses of $359,550 for 2021. The corporation also has $42,300 in dividends from publicly-traded domestic corporations in which the ownership percentage was 45 percent.

Below is the Dividends Received Deduction table to use for this problem.

2021 Dividends
Percent Ownership
Received Percentage
Less than 20 percent
50%
20 percent or more, but less than 80 percent
65%
80 percent or more
100%
If require, round final answers to the nearest dollar.
a. Calculate the corporation's dividends received deduction for 2021.
Feedback
b. Assume that instead of $423,000, Fisafolia Corporation has gross income from operations of $317,250.
Calculate the corporation's dividends received deduction for 2021.
Feedback
c. Assume that instead of $423,000, Fisafolia Corporation has gross income from operations of $350,000. Calculate the corporation's dividends received deduction for
2021.

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