A corporation buys shares of another domesticcorporation. They receive $100,000 of dividend income. They holdthe shares for 75 days and then sell the stock. What taxconsequences accrue to the corporation from the receipt of thedividend? What is the rationale for the rule? Would the resultchange if the corporation only held the stock for 5 days? If so,why? Does it really violate the rationale for the general rule?
