Ask Question
BusinessBusiness
15 February, 08:37

Westside, Inc. owns 15% of Innsbrook's common stock. This year, Westside generated $50,000 operating income and received $20,000 dividends from Innsbrook. Westside's taxable income is:

+3
Answers (1)
  1. 15 February, 11:56
    0
    a. $56.000

    Explanation:

    Westside is entitled to a 70% DRD, so income is $70.000 - $14.000 DRD.

    What is DRD? The dividends received deduction (DRD) is a federal tax deduction in the U. S. that is given to certain corporations that get dividends from related entities. The amount of the dividend that a company can deduct from its income tax is tied to how much ownership the company has in the dividend-paying company.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Westside, Inc. owns 15% of Innsbrook's common stock. This year, Westside generated $50,000 operating income and received $20,000 dividends ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Show a detailed journalizing of the following transactions: Galle Inc. entered into the following transactions during January; Jan 1 - Borrowed $250,000 from First Street Bank by signing a note payable.
Answers (1)
What is the most accurate definition of bankruptcy
Answers (2)
Which statements indicate that Rick's company is a limited liability company? Rick Douglas is a bright and passionate lighting designer. Following his passion for innovative lighting solutions, he founded a company called Dazzle in 2000.
Answers (1)
in an assembly operation at a furniture factory, six employees assembled an average of 450 custom chairs per 5-day week. What is the labor productivity of this operation?
Answers (1)
Axle Corporation acquires 100% of Drexel Corporation's stock from Drexel's shareholders for $500,000 cash. Drexel Corporation has assets with a $600,000 adjusted basis and an $800,000 FMV. The assets are subject to $200,000 in liabilities.
Answers (1)
New Questions in Business
George and Dan's political consulting firm is losing money, but it is more than covering its variable costs. What is the most accurate statement we can make about it?
Answers (1)
The company or organization identified in Chapter 11, Analytics in Action, is Group of answer choices Centers for Disease Control and Prevention Petrobras Intercontinental Hotels MeadWestvaco Corporation
Answers (1)
Davita Spencer is a manager at Half Dome Asset Management. She can generate an alpha of 2% a year up to $100 million. After that her skills are spread too thin, so she cannot add value, and her alpha is zero.
Answers (1)
Lusk Corporation produces and sells 15,700 units of Product X each month. The selling price of Product X is $27 per unit, and variable expenses are $21 per unit. A study has been made concerning whether Product X should be discontinued.
Answers (1)
ichael McNamee is the proprietor of a property management company, Apartment Exchange, near the campus of Penscola State College. The business has cash of $8,000 and furniture that cost $9,000 and has a market value of $13,000.
Answers (1)
Home » Business » Westside, Inc. owns 15% of Innsbrook's common stock. This year, Westside generated $50,000 operating income and received $20,000 dividends from Innsbrook. Westside's taxable income is:
Sign Up Forgot Password?