During the current year, Swallow Corporation, a calendar year C corporation, has the following transactions:
Income from operations ..........................................$660,000
Expenses from operations ........................................760,000
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?