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SFS Inc. has $100,000 in net income from business operations this tax year. SFS also receives $60,000 in dividends from the 20%-owned HVR Inc. and

SFS Inc. has $100,000 in net income from business operations this tax year. SFS also receives $60,000 in dividends from the 20%-owned HVR Inc. and $40,000 in dividends from the 15%owned HVG Inc. Both HVR and HVG are domestic corporations.

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What is the dividends received deduction (DRD) before applying any taxable income limitations for SFS Inc.?

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