Eagle Corporation, a Calendar Year C Corporation, Owns Stock in Hawk

question 13

Multiple Choice

Eagle Corporation, a calendar year C corporation, owns stock in Hawk Corporation and has taxable income of $100,000 for the year before considering the dividends received deduction. In the current year, Hawk Corporation pays Eagle a dividend of $130,000, which was considered in calculating the $100,000. What amount of dividends received deduction may Eagle claim if it owns 15% of Hawk's stock?

• A) $0
• B) $50,000
• C) $65,000
• D) $84,500
• E) None of the above

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