Haze Corporation, a calendar year C corporation, owns stock in Lava Corporation and has taxable income of $127,000 for the year before considering the dividends received deduction. In the current year, Lava Corporation pays Haze Corp a dividend of $172,000, which was considered in calculating the $127,000. What amount of dividends received deduction may Haze claim if it owns 15% of Lava's stock? A. $0 B. $111,800 C. $86,000 D. $63,500

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Haze Corporation, a calendar year C corporation, owns stock in Lava Corporation and has taxable income of $127,000 for the year before considering the dividends received deduction. In the current year, Lava Corporation pays Haze Corp a dividend of $172,000, which was considered in calculating the $127,000. What amount of dividends received deduction may Haze claim if it owns 15% of Lava's stock?

A. $0

B. $111,800

C. $86,000

D. $63,500

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