Sparks Corporation receives a dividend of $100,000 from Jill Corporation,a C Corporation.Sparks owns 70% of Jill Corporation stock.Sparks' dividends-received deduction is $80,000.

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Since Sparks owns 70% of Jill Corporation's stock, their dividends-received deduction would be 70% of the $100,000 dividend received, which is $70,000. However, the maximum deduction allowed under Section 243 of the Internal Revenue Code is 80% of the dividend received, which in this case would be $80,000. Therefore, Sparks' deduction would be limited to $80,000.

Sparks Corporation Receives a Dividend of $100,000 from Jill Corporation,a