In Year 1, Best Corp., an accrual-basis calendar-year C corporation, received $100,000 in dividend income from the common stock that it held in an unrelated domestic corporation. The stock was not debt-financed and was held for over a year.
Best recorded the following information for Year 1:
Loss from Best's operations $(10,000)
Dividends received 100,000
Taxable income (before dividends- received deduction) $ 90,000
Best's dividends-received deduction on its Year 1 tax return was:
a. $100,000
b. $80,000
c. $70,000
d. $63,000
Answer: D
Accounting
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