The John and John Corporation has ordinary income of $250,000 for 2021, including dividends of $50,000 received from 90%-owned domestic corporations. How much is the Johnson and Johnson corporation’s dividends received deduction for 2021? $0 $40,000 $50,000 $170,000

The John and John Corporation has ordinary income of $250,000 for 2021, including dividends of $50,000 received from 90%-owned domestic corporations. How much is the Johnson and Johnson corporation’s dividends received deduction for 2021? $0 $40,000 $50,000 $170,000

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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Question

The John and John Corporation has ordinary income of $250,000 for 2021, including dividends of $50,000 received from 90%-owned domestic corporations. How much is the Johnson and Johnson corporation’s dividends received deduction for 2021?

$0
$40,000
$50,000
$170,000

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