Asked by Harun Abdullahi on Apr 27, 2024
Verified
Corporations can exclude ____________% of the dividends received from preferred stock from taxes.
A) 50
B) 70
C) 20
D) 15
E) 62
Preferred Stock
A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with fixed dividends.
- Recognize the tax exemption percentages for dividends from preferred stocks.
Verified Answer
MR
Maricel RodriguezMay 02, 2024
Final Answer :
B
Explanation :
Corporations can exclude 70% of the dividends received from their investments in the preferred stock of other corporations from their taxable income, to avoid double taxation of those dividends.
Learning Objectives
- Recognize the tax exemption percentages for dividends from preferred stocks.