Theta Corporation reports the following results for the current year:
Gross profits on sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $220,000

Dividends from less-than-20%-owned domestic corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000

Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218,000

a. What is Theta’s taxable income for the current year?

b. How would your answer to Part a change if Theta’s operating expenses are instead $234,000?

c. How would your answer to Part a change if Theta’s operating expenses are instead $272,000?

d. How would your answers to Parts a, b, and c change if Theta received $70,000 of the dividends from a 20%-owned corporation and the remaining $30,000 from a lessthan- 20%-owned corporation?