Exercise 3-27 (Algorithmic) (LO. 2)

Crane and Loon Corporations, two unrelated C corporations, have the following transactions for the current year.

Crane Gross income from operations $216,000 ................ Loon $345,600

crane Expenses from operations 302,400..................................... Loon. $362,880

Crane Dividends received from domestic corporations (15% ownership) 129,600 ................ Loon 259,200

Less than 20% deduction ..50%

20%or more less than 80% ....65%

80% or more......... 100%

a. Compute the dividends received deduction for Crane Corporation. $.............

b. Compute the dividends received deduction for Loon Corporation. $..................