Bluebird Corporation received a $200,000 dividend from Canary Corporation.Bluebird,which owns 80% of Canary Corporation,may take a dividends received deduction of $200,000.

Question

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The allowable dividends received deduction for a corporation that owns 80% or more of the dividend-paying corporation is 100%.Therefore,Bluebird can take a dividends received deduction of $200,000.

Bluebird Corporation Received a $200,000 Dividend from Canary Corporation