Rho Corporation owns 22% of Divvy Corporation's stock. Divvy has paid Rho $100,000 in dividends for the current year with the last dividend payment made on December 15. Rho is doing some year-end tax planning and, as of now, expects an operating loss of $35,000 not counting the dividend income. Thus, Rho expects $65,000 ($100,000 - $35,000) of taxable income before the dividends-received deduction.

a) Calculate Rho's expected taxable income and tax liability for the current year and using the facts. (show calculations please) and be thorough please

b) Given the result in Part a, what year-end tax planning strategies can you suggest to improve Rho's benefit of the dividends-received deduction for the current year?