In the current year, Emrah, a cash basis taxpayer, incorpora…

In the current year, Emrah, a cash basis taxpayer, incorporated his CPA practice. No liabilities were transferred. The following assets were transferred to the corporation: Cash (checking account) $500 Computer equipment: Adjusted Basis 30,000Fair Market Value 34,000Cost 40,000Immediately after the transfer, Emrah owned 100% of the corporation’s stock. The corporation’s total basis in the transferred assets is:

Rap Corporation owns 15 percent of the Williams Corp. stock….

Rap Corporation owns 15 percent of the Williams Corp. stock. Williams distributed a $10,000 dividend to Rap Corporation. Rap Corp.’s taxable income (loss) before the dividend was ($2,000). What is the amount of Rap’s dividends received deduction on the dividend it received from Williams Corp.?