Able Corporation owns 50% of the stock of Basic Corporation. On July 1, 2021, Basic pays Able a dividend of 100,000. Able's taxable income before the dividends received deduction is as follows: Current year Loss from operations (30,000) Dividend from Basic Corporation 100,000 Taxable income before the DRD 70,000 In addition, Able has a net operating loss carryforward of 20,000 from 2020 (not included above). How much is Able's dividends received deduction in 2021? Explain your Answer

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Ables dividends received deduction DRD in 2021 is 35000 Heres how we arri... View the full answer