In the current year, Acorn, Inc., had the following items of income and expense:

Sales ..................................$500,000
Cost of sales .......................250,000
Dividends received ..............25,000

The dividends were received from a corporation of which Acorn owns 30%. In Acorn’s current-year corporate income lax return, what amount should be reported as income before special deductions?
a. $525,000

b. $505,000 

c. $275,000

d. $250,000