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Russell Corporation owns stock in Pierce Corporation and has operating income of $150,000 and operating expenses of $200,000

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Answer #1

B) $ 65,000

Explanation : If a corporation own more than 20% but less than 80% of distributing corporation, then dividend received deduction is 65% of total dividend received to the recipient . So, Russell corporation claim $ 100,000 X 65% = $ 65,000 for dividend received deduction .

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