Multiple Choice
Pink Corporation, which owns stock in Sienna Corporation, had net operating income of $125,000 for the year.Sienna pays Pink a dividend of $60,000.Pink takes a dividends received deduction of $48,000.Which of the following statements is correct?
A) Pink owns less than 20% of Sienna Corporation.
B) Pink owns 20% or more, but less than 80% of Sienna Corporation.
C) Pink owns 80% of Sienna Corporation.
D) Pink owns more than 80% of Sienna Corporation.
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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