Which of the following statements regarding dividends and $($or$)$ the dividends received deduction $($DRD$)$ is true?

Multiple Choice

Dividends received by corporations are taxed at a lower tax rate than ordinary income.

The DRD can increase the net operating loss of a corporation.

Corporations are allowed to deduct from a dividend recelved, the product of the dividend and the percentage of the receiving corporation's ownership in the distributing corporation's stock.

$$ The DRD allows corporations to deduct the amount of dividends that they distribute.