Rocco Corporation,a C corporation,owns 60% of the stock of Bien Corporation.Bien Corporation is a French corporation which conducts all of its business in France.Bien pays a $100,000 dividend to Rocco Corporation.Rocco Corporation will have a 100% dividend received deduction on these dividends,resulting no tax on these dividends.

Question

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The dividend received deduction allows a corporation to deduct 100% of dividends received from a foreign corporation, resulting in no tax on these dividends.

Rocco Corporation,a C Corporation,owns 60% of the Stock of Bien