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Pearl Corporation, which owns stock in Opal Corporation, had net operating income of $ 1 2 5 , 0 0 0 for the year. Opal

Pearl Corporation, which owns stock in Opal Corporation, had net operating income of $125,000 for the year. Opal pays Pearl a dividend of $100,000. Pearl takes a dividends received deduction of $65,000. Which of the following statements is correct?
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Pearl owns less than 20% of Opal Corporation.
Pearl owns 20% or more, but less than 80% of Opal Corporation.
Pearl owns 80% of Opal Corporation.
Pearl owns more than 80% of Opal Corporation.

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