Ask Question
BusinessBusiness
12 July, 04:13

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:

+5
Answers (1)
  1. 12 July, 04:16
    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?
Find 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 the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Revenue from property taxes is used to fund which? public schools and other services. highway repairs and pollution controls. Social Security and Medicare. medical research and development.
Answers (2)
The Clean Air Act of 1990 reduces the negative externalities caused by power plant air and water pollution by A) direct government regulationB) issuing tradable pollution permits to each power plantC) encouraging private bargaining between the power
Answers (1)
Based on gdp how has us economy been doing in last 5 years
Answers (1)
Your client, Vinces Veggies, wants to increase downloads of their popular recipe printouts. You suggest they create ad groups based on the cooking categories that appear on their website.
Answers (1)
A department head at a university resigned on the first day of the spring semester. It was subsequently determined that the department head deleted numerous files and directories from the server-based home directory while the campus was closed.
Answers (1)
New Questions in Business
How does taxation and legislation impact positively and negatively on outsurance
Answers (1)
Alloy Supply Co. has a new project that will require the company to borrow $3,000,000. Acme has made an agreement with three lenders for the needed financing. First National Bank will give $1,500,000 and wants 6% interest on the loan.
Answers (1)
As a result of a fall in the price of gasoline, consumers can afford to buy more gasoline for more driving trips. this is an illustration of
Answers (1)
g On January 2, Yorkshire Company acquired 34% of the outstanding stock of Fain Company for $400,000. For the year ended December 31, Fain Company earned income of $104,000 and paid dividends of $32,000.
Answers (1)
Foster, who owns a successful business with two locations and a few international clients, was approached by a large organization about dramatically expanding his company.
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?