for corporations, we need to make adjust entries for the difference between GAAP rule and tax rules.

But I don't know whether we should make adjustment entries for Dividend received deduction (DRD). I just finished the becker simulation quesiton for Chapter 3 corporation. It seems there's no adjustment for DRD. But why?

because I understand, DVD 100/80/70% Exclusion only works in IRC tax rules, not GAAP rules, we need to adjust it. Why Becker didn't?

kj_nyc wrote: Yes, you need to adjust for the DRD as a permanent difference.  But I remember that some of the practice problems say to ignore the DRD.  Read the problem again and see if that is the case.

I went back to check it. it didn't ssay "ignore the DRD" or something like that.

anyone help me with it? It's Becker question.

I also think we should make adjusment for the DRD. why becker simulation solution didn't?!