2.During 20X5, X co. had the following income and expenses:

Gross income from operations$3,000,000

Business expenses<1,400,000>

Dividends received from Y co. (32% owned by X co.)400,000

Capital gains 150,000

Capital loss carry forward<183,000>

Net operating loss carry forward <25,000>

a.Determine X co.s dividends received deduction in 20X5?

b.Determine X co.s dividends received deduction in 20X5 assuming that there was no NOL carry forward and X co.s business expenses were:

(i) $3,050,000 or (ii) $3,200,000.