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Problem - In the current year, Acorn, Inc., had the following items of income and expense:
Sales $500,000
Cost of sales 250,000
Dividends received 25,000
The dividends were received from a corporation of which Acorn owns 30%. In Acorn's current-year corporate income tax return, what amount should be reported as income before special deductions?
a. $525,000
b. $505,000
c. $275,000
d. $250,000
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