Crane and Loon corporations, two unrelated C corporations, have the following transactions for the current year.

	Crane		Loon
Gross income from operations	$216,000		$345,600
Expenses from operations	302,400		362,880
Dividends received from domestic corporations (15% ownership)	129,600		259,200

Click here to access the dividends received deduction table.

a. Compute the dividends received deduction for Crane Corporation.

b. Compute the dividends received deduction for Loon Corporation.

Percentage of Ownership by Corporate Shareholder Deduction Percentage Less than 20% 50% 65% 20% or more (but less than 80%) 80% or more* 100% *The payor corporation must be a member of an affiliated group with the recipient corporation. a