3/39

C.3-39 Dividends-Received Deduction. Theta Corporation reports the following results for the current year: Gross profits on sales $220,000 Dividends from less-than-20%-owned domestic corporations 100,000 Operating expenses 218,000 a. What is Theta's taxable income for the current year? b. How would your answer to Part a change if Theta's operating expenses are instead $234,000? c. How would your answer to Part a change if Theta's operating expenses are instead $272,000? d. How would your answers to Parts a, b, and e change if Theta received $70,000 of the dividends from a 20%-owned corporation and the remaining $30,000 from a less- than-20%-owned corporation? C:3-40 Stock Held 45 Days or Less. Bet Corporation purchased 100 shares of Gamma Corporation common stock (less than 5% of the outstanding stock) two days before the