Its not $10,000$

Wasatch Corporation $($WC$)$ received a $$200,000$ dividend from Tager Corporation $($TC$).$

WC owns $15$ percent of the TC stock. Compute WC$\text{'}$s deductible dividends$-$received

deduction $($DRD$)$ in each of the following situations:

Required:

a$.$ WC$\text{'}$s taxable income $($loss$)$ without the dividend income or the DRD is $$10,000.$

b$.$ WC$\text{'}$s taxable income $($loss$)$ without the dividend income or the DRD is $$(10,000).$

c$.$ WC$\text{'}$s taxable income $($loss$)$ without the dividend income or the DRD is $$(99,000).$

d$.$ WC$\text{'}$s taxable income $($loss$)$ without the dividend income or the DRD is $$(101,000).$

e$.$ WC$\text{'}$s taxable income $($loss$)$ without the dividend income or the DRD is $$(500,000).$

f$.$ What is WC$\text{'}$s book$-$tax difference associated with its DRD in part $($a$)?$ Is the difference

favorable or unfavorable? Is it permanent or temporary?

Answer is complete but not entirely correct.

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Required B

WC$\text{'}$s taxable income $($loss$)$ without the dividend income or the DRD is $$10,000.$Wasatch Corporation $($WC$)$ received a $$200,000$ dividend from Tager Corporation $($TC$).$ WC owns $15$ percent of the TC stock. Compute WC$\text{'}$s deductible dividends$-$received deduction $($DRD$)$ in each of the following situations:

Required:

WC$\text{'}$s taxable income $($loss$)$ without the dividend income or the DRD is $$10,000.$

WC$\text{'}$s taxable income $($loss$)$ without the dividend income or the DRD is $$(10,000).$

WC$\text{'}$s taxable income $($loss$)$ without the dividend income or the DRD is $$(99,000).$

WC$\text{'}$s taxable income $($loss$)$ without the dividend income or the DRD is $$(101,000).$

WC$\text{'}$s taxable income $($loss$)$ without the dividend income or the DRD is $$(500,000).$

What is WC$\text{'}$s book$-$tax difference associated with its DRD in part $($a$)?$ Is the difference favorable or unfavorable? Is it permanent or temporary?