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In 2018, Bluebird, Inc., had the following items of income and expense: Sales $500,000 Cost of sales 280,000 Dividend income 200,000 The dividends were received
In 2018, Bluebird, Inc., had the following items of income and expense: Sales $500,000 Cost of sales 280,000 Dividend income 200,000 The dividends were received from a corporation of which Bluebird owns 10%. a) In Bluebird's current-year corporate income tax return, what is Bluebird's dividends-received deduction? b) If instead, Bluebird had the following income and expenses, what is their dividends-received deduction? Sales $300,000 Cost of sales 200,000 Operating expenses 220,000 Dividend income 180,000 The dividends were received from a corporation of which Bluebird owns 10%
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