Exercise 17-24 (LO. 2) Crane and Loon Corporations, two unrelated calendar year C corporations, have the following transactions for the current year. Expenses from operations Dividends received from domestic corporations (15% ownership) $180,000 255,000 100,000 Loon $300,000 310,000 230,000 Click here to access the dividends received deduction table. a. Compute the dividends received deduction for Crane Corporation. 50,000 b. Compute the dividends received deduction for Loon Corporation. 161,000X The purpose of the dividends received deduction is to prevent triple taxation. Without the deduction, income paid to a corporation in the form of a dividend would be subject to taxation for a second time (after being taxed first to the distributing corporation) with no corresponding deduction to the distributing corporation. A third level of tax would be assessed on the shareholders when the recipient Previous Next Check My Work and Complete the following statements regarding changes in accounting periods. Enter the percent as a whole number V for the short period that results from the change in accounting period. The IRS applies an objective gross receiptsfor the 12-month period must be realized in the final two months of the 12-month period for Previous Next