In each of the following independent situations, determine the dividends received deduction for the calendar year C corporation.

The Rose Corporation owns 15%, Pansy owns 10% and Daffodil owns 55% of the stock in the corporations paying the dividends.

	Rose Corporation	Pansy Corporation	Daffodil Corporation
Income from operations	$1,200,000	$1,200,000	$1,200,000
Expenses from operations	(800,000)	(1,300,000)	(1,500,000)
Qualifying dividends	400,000	400,000	400,000

The dividends received deduction for Pansy Corporation is

EXHIBIT 12.5 Dividends Received Deduction Percentage of Ownership by Corporate Shareholder Deduction Percentage Less than 20% 50% 20% or more (but less than 80 %) 80% or more 65% 100% The payor corporation must be a member of an affiliated group with the recipient corporation