When a corporation owns less than 20% of the stock of another company, dividends received are not treated as income.

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Camryn Christenson · Accepted Answer

Final Answer : False, Explanation :  When a corporation owns less than 20% of the stock of another company, dividends received are generally treated as income, but they may qualify for a dividends-received deduction under U.S. tax law, which reduces the taxable amount.

When a corporation owns less than 20% of the stock of another company, dividends received are not treated as income.

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