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Problem - During the current year, Swallow Corporation, a calendar year C corporation, has the following transactions:
Income from operations $660,000
Expenses from operations 760,000
Dividends received from Brown Corporation 240,000
Required -
a. Swallow Corporation owns 12% of Brown Corporation's stock. How much is Swallow's taxable income or NOL for the year?
b. Assume instead that Swallow Corporation owns 26% of Brown Corporation's stock. How much is Swallow's taxable income or NOL for the year?
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