Becker CPA Review $17-3$

In the current year, Acorn, Inc., had the following items of income and expense:

Sales

$$500,000$

Cost of sales

$250,000$

Dividends received

$25,000$

The dividends were received from a corporation of which Acorn owns $30\%.$ In Acorn's current$-$year corporate income tax return, what amount should be reported as income before special deductions?

a$.$ $$525,000$

b$.$ $$505,000$

c$.$ $$275,000$

d$.$ $$250,000$