16. In the current year, Red Corporation (a calendar year C corporation), which owns stock in Blue Corporation, had net operating income of $200,000 for the year. Blue pays Red a dividend of $40,000. Red takes a dividends received deduction of $20,000. Which of the following statements is correct a Red owns 80% of Blue Corporation b. Red owns 20% or more, but less than 80% of Blue Corporation. c. Red owns 80% or more of Blue Corporation. d. Red owns less than 20% of Blue Corporation. 17. Opal Corporation, an accrual method, calendar year C corporation, was formed and began operations on July 1, 2021 The following expenses were incurred during the first tax year (July 1 through December 31, 2021) of operations. Expenses of temporary directors and of organizational meetings Fee paid to the state of incorporation Accounting services incident to organization Legal services for drafting the corporate charter and bylaws Expenses incident to the printing and sale of stock certificates $8,000 2,000 3,500 4,300 6,000 Assuming a 248 election, what is Opal's deduction for organizational expenditures for 20217 A. 5503 b. $460 c. $5,427. d. $5.627. 18. When Pheasant Corporation was formed under 3 351, Kristen transferred property (basis of $26,000 and fair market value of $22,500) for 1244 stock: Kristen's basis in the Pheasant stock is $26,000. Three years later, Pheasant Corporation goes bankrupt and its stock becomes worthless. Kristen, who is single, owned the stock as an investment. Kristen's loss is a. $26,000 capital. b. $22.500 ordinary and $3,500 capital. c. $3,500 ordinary and $22,500 capital. d. $26,000 ordinary. eco non of