In 2007, Acorn, Inc. had the following items of income and expense:
|
Sales |
$500,000 |
|
Cost of sales |
250,000 |
|
Dividends received |
25,000 |
The dividends were received from a corporation of which Acorn owns 30%. In Acorn’s 2007 corporate income tax return, what amount should be reported as income before special deductions?
- $525,000
- $505,000
- $275,000
- $250,000