John Budd is the sole shareholder of Ral Corp., an accrual-basis taxpayer engaged in wholesaling operations. Rals retained earnings at January 1, 2020, amounted to $1 million. For the year ended December 31, 2020, Rals book income, before federal income tax, was $300,000. Included in the computation of this $300,000 was the following:

Dividends received on 500 shares of stock of a taxable domestic corporation that had 1,000,000 shares of stock outstanding (Ral had no portfolio indebtedness.)

$1,000

What portion of the dividend revenue net of the dividends-received deduction should be included in Rals 2020 taxable income?

A) $350

B)$500

C)$650

D)$200