This week we look at dividends as the readings in chapter 3 have a section on such. To start, C Corporations may own stock in other C Corporations. And, Corporations pay dividends to shareholders.
How would (and why and explain why you chose the method you did) a dividend be handled tax wise by X Corporation in the following circumstances.
Domestic Corporation X owns 100% of Domestic Z stock and Z pays X Corporation a $50 Million dividend.
Same situation except now Z is a foreign corporation.
Same situation except now X owns 25% of Z Corporation.
