ACCOUNTING TAX

1. Whati is the dividends-received allowed a corporation that receives $170,000 in dividends from a 45% owned domestic corporation if 37% of the cost ofr the investments is borrowed to make the purchase?

2. McIntype Corporation purchase 1,000 share of a 10% owned domestic corporation at $100 per share. McIntyre receives a $25 per share dividend within the first year after the purchase. What is the amount by which McIntyre must reduce the basis of the acquired stock?