Question: During the current year, Swallow Corporation, a calendar year C corporation, has the following transactions: Income from operations $660,000 Expenses from operations 720,000

During the current year, Swallow Corporation, a calendar year C corporation, has the following transactions:

Income from operations …………………………………        $660,000

Expenses from operations ………………………………         720,000

Dividends received from Brown Corporation …………. 240,000

a. Swallow Corporation owns 12% of Brown Corporation’s stock. How much is Swallow’s taxable income or NOL for the year?

b. Assume instead that Swallow Corporation owns 26% of Brown Corporation’s stock. How much is Swallow’s taxable income or NOL for the year?

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