Mike Corporation, which owns stock in Red Corporation, had net operating income of $125,000 for the year. Red pays Mike a dividend of $100,000. Mike takes a dividends received deduction of $80,000. Which of the following statements is correct?

a. Pearl owns less than 20% of Opal Corporation.

b. None of the above

c. Pearl owns more than 80% of Opal Corporation.

d. Pearl owns 20% or more, but less than 80% of Opal Corporation.