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Problem - Walnut Corporation owns 60 percent of Teak Corporation, a domestic corporation. During the current year, Walnut Corporation received $20,000 in dividends from Teak Corporation. Assuming that Walnut's taxable income for the current year before the dividends received deduction is $500,000, what is the amount of Walnut's dividends received deduction for the current year?
a. $10,000
b. $13,000
c. $16,000
d. $20,000
e. None of the above
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