Calculate the corporation dividends received deduction

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Question - Fisafolia Corporation has gross income from operations of $477,000 and operating expenses of $333,900 for the current year. The corporation also has $47,700 in dividends from publicly traded domestic corporations (ownership in all corporations was less than 20 percent).

Below is the Dividends Received Deduction table to use for this problem.

Percent Ownership Dividends Received

Deduction Percentage Less than 20% 70% 20% or more, but less than 80% 80% More than 80% 100%

a. Calculate the corporation's dividends received deduction for the current year.

b. Assume that instead of $477,000, Fisafolia Corporation has gross income from operations of $286,200.

Calculate the corporation's dividends received deduction for the current year.

Reference no: EM131644792

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