Monroe Corporation Reported the Following Results for the Current Year

question 19

Multiple Choice

Monroe Corporation reported the following results for the current year: $\begin{array}{llcc} \text { Gross income from operations } &\$150,000 \\ \text { Operating expenses } &154,000\\ \text { Dividends from \( 30 \% \) owned domestic corporation } &100,000\\ \text { Long-term capital gain } &2,000\\ \text { Short-term capital loss} &(3,000) \\ \text { Charitable contributions } &15,000\\\end{array}$

In addition to the above, Monroe Corporation has a $5,000 NOL carryforward from last year.How much can Monroe Corporation take as a dividend received deduction for the current year?

• A)$80,000
• B)$61,750
• C)$76,000
• D)$65,000

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Definitions:

Quantity Demanded

The total amount of goods or services that consumers are willing and able to purchase at a given price in a specific time period.

Quantity Supplied

The quantity of a product or service that suppliers are ready and capable of selling at a particular price during a certain timeframe.

Demand Curve

A visual depiction that illustrates the connection between a product's price and the amount consumers are willing to buy at different prices.

Equilibrium Price

The rate at which the supply of goods equals the demand for goods.