2. for the current year, the echo company possessed the following income: \textup{profit from operations}=\$110\textup{,}000 \textup{dividends from 20\%-owned taxable domestic operation}=\$1\textup{,}100 in the echo company's current year taxable income, how much should be included for dividends received?

220 dollars should be included in companies taxable income.

Explanation:

This problem wants us to calculate the amount of dividends to be included in the Echo Company's taxable income for the current year. Echo Company's has received dividend from 20% owned taxable domestic compnay, The company is eligible for 80% dividends received deduction. We can compute this value using the following formula:

Dividends=$1,100-(80% * $1,100)

Dividends= 1,100-$880

Dividends=$220

there was no passage listed but using the process of elimination i'd say it was d. the high economy would do the opposite. i don't see how low prices would affect it. high unemployment is possible but i feel d is the better answer.

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy