[jcw1503]

Well it is true….but it is not…The exam is tricky…here is an example from my study material….

In the current year, Brown, a C corporation has gross income (before dividends) of $900,000 and deductions of $1,100,000 (excluding the dividends-received deduction). Brown received dividends of $100,000 from a Fortune 500 corporation during the current year.

What is Brown’s net operating loss?

A. $100,000

B. $130,000

C. $170,000

D. $200,000

The answer is C…..because you have a 70% DRD…..

You may be saying to yourself….Self, the questions didn’t appear to have said how much % ownership their was…

OHHHHHH…but itdid in its own snicky, twisted, evil, conniving way…(OK I may of got carried away there, I hate these tricky questions)

Readcarefully…the key phrase is….Fortune 500 company…..

You may be saying to yourself…Self, how is that a magic word…Let me tell you or let my study material tell you…

Per Study material…”Since the dividend is received from a Fortune 500 corporation it is reasonable to assume that Brown owns less than 20% of the corporation, so the dividends received deduction is 70% of the dividends received, or $70,000. This increases the NOL to $170,000.”

smh…Reasonably assumed…You know what they say when you assume…lol

Sorry had to vent and inform other test takers to be very careful….

FAR - Attempt 1-(70)...Attempt 2 (Passed Baby)-Praise the Lord-Couldn't have done it without him.
AUD- Attempt 1-Passed!!!!!!!!! )-Praise the Lord-Couldn't have done it without him.
REG-Attempt 1-(73)...Attempt 2 (Passed Baby)-Praise the Lord-Couldn't have done it without him.
BEC-Attempt 1-(71)...Attempt 2 (Passed Baby)-Praise the Lord-Couldn't have done it without him.

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