Crowley Corporation has the following income during the current year:Net income from operations$120,000Dividends received from 10% owned corporation$ 30,000Dividends received from 25% owned corporations$ 10,000Dividends received from 85% owned corporations$ 40,000What is the amount of the corporation's taxable income?
What will be an ideal response?
| Net income from operations | $120,000 |
| Plus: Dividends received | 80,000 |
| Gross income | $200,000 |
| Less: Dividends received deduction ($30,000 × .50) | ( 15,000) |
| Less: Dividends received deduction ($10,000 × .65) | ( 6,500) |
| Less: Dividends received deductions ($40,000 × 1.00) | ( 40,000) |
| Taxable income | $138,500 |
Business
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