[WI_11]

My question relates to the DRD.

I just took my 2nd REG final exam. (58,85,63)????

I am confused on one of the explinations for the DRD. The fact patern gives a C corps info for the year ended 20×5. The verbage after the info says the company owns 1% of the outstanding stock.(I know this means 70% drd). But the writing goes on to say that the dividend was DELCARED AND PAID in 20×4. (the dividend was 6000)

The question asks what is the current DRD for YR 5.

the options are

6000

4800

4200

0

I choose 0 because the DRD should have been taken on the 2004 tax return not the 2005 tax return… RIGHT?

the answer they give is C (6000*.7) which I would agree with except for the year thing. Is this a typo or am I missing someting?

AUD 89
BEC 84
FAR 87
REG 94!! ALL DONE