Question

Corporation a owns 15 percent of the stock of corporation

b. corporation b pays corporation a​ $100,000 in dividends in 2002. corporation a must pay tax on​ ________.
a. ​$ 70,000 of capital gain
b. ​$ 30,000 of ordinary income
c. ​$100,000 of ordinary income
d. ​$ 70,000 of ordinary income

Answer 1

B-$30,000 of ordinary income.