Auburn Corporation owns 6% of the stock in Cerulean Corporation. During the year, Auburn received cash dividends of $800,000 from this investment. Determine Auburn Corporation's dividends received deduction based on the following assumptions:
a.Taxable income before the deduction is $960,000.
b.Taxable income before the deduction is $720,000.
c.Taxable income before the deduction is $480,000.
Correct Answer:
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