In 2007, Best Corp., an accrual-basis calendar-year C corporation, received $100,000 in dividend income from the common stock that it held in a 15%-owned domestic corporation. The stock was not debt-financed, and was held for over a year. Best recorded the following information for 2007:
|
Loss from Best’s operations |
$ (10,000) |
|
Dividends received |
100,000 |
|
Taxable income (before dividends received deduction) |
$90,000 |
Best’s dividends received deduction on its 2007 tax return was
- $100,000
- $ 80,000
- $ 70,000
- $ 63,000