In the current year, Crimson, Inc., a calendar C corporation, has income from operations of $180,000 and operating deductions of $225,000. Crimson also had $30,000 of dividends from a 15% stock ownership in a domestic corporation. Which of the following statements is correct with respect to Crimson for the current year?
A) Crimson's NOL is $15,000.
B) A dividends received deduction is not allowed in computing Crimson's NOL.
C) The NOL is carried back 3 years and forward 10 years by Crimson.
D) Crimson's dividends received deduction is $15,000.
E) None of the above.

Question

Quizplus · Accepted Answer

Crimson's dividends received deduction is 50% of the $30,000 dividends received, which is $15,000, because they own less than 20% of the domestic corporation.

In the Current Year, Crimson, Inc