Francine Corporation reports the following income and expense items for the tax year ending December 31:Gross receipts from sales$50,000Dividends received from 15%-owned domestic corporation30,000Expenses connected with sales20,000What is Francine Corporation's taxable income?
What will be an ideal response?
$50,000 + $30,000 - $20,000 - (0.50 × $30,000) = $45,000. The dividends-received deduction is $15,000 which is less than the limitation is $30,000 [($50,000 + $30,,000 - $20,000) × 050] and does not apply.
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