Azul Corporation, a calendar year C corporation, received a dividend of $30,000 from Naranja Corporation. Azul owns 25% of the Naranja Corporation stock. Assuming it is not subject to the taxable income limitation, Azul's dividends received deduction is $21,000
a. True
b. False
Indicate whether the statement is true or false
False
RATIONALE: The deduction percentage for a 25% ownership is 80%. Thus, the dividends received deduction would be $24,000 ($30,000 × 80%).
Business
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a. true b. false
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