Diane Corporation purchased for $1,400,000 14,000 shares of Beer Corporation common stock (less than 5% of the outstanding Beer stock) at the beginning of the current year. It used $560,000 of borrowed money and $840,000 of its own cash to make this purchase. Diane paid $56,000 of interest on the debt this year. Diane received a $50,000 cash dividend on the Beer stock on September 1 of the current year. Cheers has $1 million of taxable income before any dividends-received deduction. Read the requirements. Requirement a. What amount can Diane deduct for the interest paid on the loan? Diane may deduct all the interest paid on the loan. Requirement b. What dividends-received deduction can Diane claim with respect to the dividend? How much of the $50,000 dividends received from Beer must Diane include in its income? The dividends-received deduction for Diane is All $50,000 7500