Using Chapter 11, Research Problem #4 (Prewar, Inc.) on page 11-25 of the textbook, prepare a paper that provides each of the following: What primary or secondary source was used to support the sections of the IRC? Which tests must be met to qualify for taking the deduction and why? How do the rules vary in real-world application? What was the most useful information gained in the process of researching and determining the tax treatment? c. Explain how your research was conducted and how you arrived at your calculation for the dividend received deduction. d. Provide a conclusion.

4. This year, Prewer Inc. received a $160,000 dividend on its investment consisting of 16

percent of the outstanding stock of TKS Inc., a taxable domestic corporation. Before

considering this dividend, Prewer had a $43,500 operating loss for the year. It also had a

$31,300 NOL carryover deduction from the prior year. What is Prewer's taxable income

this year?