In each of the following problems, identify the tax issues posed by the facts presented. Determine the possible tax consequences of each issue that you identify.

62. Myrtle Coast Corporation has a $35,000 operating loss during the current year.

Not included in the loss is a $40,000 dividend it received from a corporation in

which it owns a 15% interest.

63. LMC, Inc., is equally owned by Larry, Maurice, and Charles. The owners are

sports agents. LMC