During the current year, Quartz Corporation (a calendar year C corporation) has the following transactions:
Income from operations$350,000
Expenses from operations370,000
Dividends received from ABC Corporation50,000
?
Quartz owns 25% of ABC Corporation’s stock. How much is Quartz Corporation’s taxable income (loss) for the year?
What will be an ideal response?
Quartz has an NOL, computed as shown here:?
| Gross income: | ||
| From operations | $350,000 | |
| Dividends | 50,000 | $400,000 |
| Less: | ||
| Expenses from operations | $370,000 | |
| Dividends received deduction ($50,000 × 65%) | 32,500 | (402,500) |
| Net operating loss | ($ 2,500) |
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