Orange Corporation, a calendar year C corporation, owns stock in White Corporation and has net operating income of $400,000 for the current year. White Corporation pays Orange a dividend of $60,000. What amount of dividends received deduction may Orange claim if it owns 45% of White stock (assuming Orange's dividends received deduction is not limited by its taxable income)?
A) $30,000
B) $39,000
C) $42,000
D) $60,000
E) None of these.

Question

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The Answer of Orange Corporation, a calendar year C corporation, owns stock in White Corporation and has net operating income of $400,000 for the current year. White Corporation pays Orange a dividend of $60,000. What amount of dividends received deduction may Orange claim if it owns 45% of White stock (assuming Orange's dividends received deduction is not limited by its taxable income)?
A) $30,000
B) $39,000
C) $42,000
D) $60,000
E) None of these.

Orange Corporation, a Calendar Year C Corporation, Owns Stock in White