_____ The dividend received deduction applies to
A) Only domestic subsidiaries.
B) Only foreign subsidiaries.
C) Both foreign and domestic subsidiaries.
D) Only domestic subsidiaries whose earnings are being invested indefinitely.
E) Only foreign subsidiaries whose earnings are being invested indefinitely.

Question

Quizplus · Accepted Answer

The dividend received deduction (DRD) applies to dividends received from domestic corporations, allowing a corporation to deduct a portion of the dividends received from its taxable income. This deduction does not apply to dividends from foreign subsidiaries.

_____ the Dividend Received Deduction Applies to