In 2015, Datasoft Inc. received $350,000 in dividends from CSLabs Inc. Datasoft's taxable income before the dividends received deduction and $20,000 charitable contribution deduction is $300,000. What is Datasoft's DRD assuming it owns 15% of the CSLabs Inc. stock?
The dividend is a kind of reward which is paid by the company for holding of equity share this will be announced in the annual general meeting of the company.
Answer and Explanation:
If a company owns less than 20% of another company, it is able to deduct 70% of the dividends it receives.
Hence applying the above condition to this...
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from Finance 101: Principles of FinanceChapter 16 / Lesson 2