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McCannon Inc. has been in operations for four years. The first three years it accumulated operating losses of $82400. In the fourth year it earned
McCannon Inc. has been in operations for four years. The first three years it accumulated operating losses of $82400. In the fourth year it earned $30900 in operating income. In the current year, its fifth year, it had $20600 of operating income and $5150 of dividend income from Irving Inc. McCannon owns 15% of Irving Inc. What is McCannons taxable income in the fifth year, assuming the 80% taxable income limit applies for all the years? [For your answer, please ignore the dollar sign and the comma.]
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