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Business, 07.03.2020 05:10 angelina0miles

Red Corporation, which owns stock in Blue Corporation, had net operating income of $200,000 for the year. Blue pays Red a dividend of S40,000. Red takes a dividends received deduction of $28,000. Which of the following statements is correct?

a. Red owns less than 20% of Blue Corporation.
b. Red owns 20% or more,
c. Red owns 80% of Blue Corporation.
d. Red owns 80% or more of Blue Corporation.
e. None of the above.

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Red Corporation, which owns stock in Blue Corporation, had net operating income of $200,000 for the...
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