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Problem 11-4 Special Deductions and Limitations (LO 11.3) Fisafolia Corporation has gross income from operations...

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Accounting

Problem 11-4 Special Deductions and Limitations (LO 11.3)

Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of $160,000 for the current year. The corporation also has $30,000 in dividends from publicly traded domestic corporations in which the ownership percentage was 45%.

Below is the Dividends Received Deduction table to use for this problem.

Percent Ownership Dividends Received Deduction Percentage
Less than 20% 70%
20% or more, but less than 80% 80%

More than 80%

Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $135,000. Calculate the corporation's dividends received deduction for the current year.

100%

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