Brown Corporation has the following items for Year 1. Its income statement is as follows. There are no NOL and capital losscarryback, and DPAD.

Income

Sales100

Dividends received from stock investments in

Less than 50% owned U.S.corporations30

Interest income

City of Flintbonds10

Google bonds20

Total capital gains20

Life insurance receipt from the pass-away of CEO Janet.50

Expenses

Cost of goodssold30

Salariesexpenses20

Total CapitalLoss22

Interest expense:

Loan to purchase City of Flintbonds12

Other businessloans11

Depreciation for bookpurpose*20

Premiums on term life insurance policies on lives

of CEO Janet andKim32

*Depreciation for tax purposes is $30

The following questions all concern about Year 1.

(a) What is the dividend received deduction? (2pts) Ignore any exception or taxable income limitation.