During the Current Year, Timepiece Corporation Has Operating Income of $460,000

question 20

Multiple Choice

During the current year, Timepiece Corporation has operating income of $460,000 and dividend income of $70,000 from 45% owned domestic corporations. Total operating expenses for the year are $470,000. What is Timepiece's dividends-received deduction for the current year?

• A)$- 0 -
• B)$39,000
• C)$45,500
• D)$60,000
• E)$70,000

---

Definitions:

Net Operating Income

Measures the profit a company generates from its core business operations, excluding expenses related to interest and taxes.

Selling Price

The price at which a product or service is sold to customers.

Sales Volume

The total number of units sold or services provided by a business within a specific period.

Net Operating Income

Income from a company's everyday operations, excluding non-operating income and expenses like interest and taxes.