2.99 See Answer

Question: Parent Corp. owns 40% of Sub Corp.


Parent Corp. owns 40% of Sub Corp. In the current year, Parent has gross income of $43,000 and allowable deductions of $30,000 before considering any dividends received deduction (ORD). Included in the $43,000 gross income is $8,000 of dividends from Sub. What is the maximum ORD available to Parent?
a. $4,000
b. $5,200
c. $8,000
d. $8,450