In the current year, Acorn, Inc., had the following items of income and expense:   Sales $500,000 Cost of sales 250,000 Dividends received 25,000   The dividends were received from a corporation of which Acorn owns 30%. In Acorn's current-year corporate income tax return, what amount should be reported as income before special deductions? a.$525,000 b.$505,000 c.$275,000 d.$250,000

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Becker CPA Review 17-1

In the current year, Acorn, Inc., had the following items of income and expense:

 

Sales $500,000
Cost of sales 250,000
Dividends received 25,000

 

The dividends were received from a corporation of which Acorn owns 30%. In Acorn's current-year corporate income tax return, what amount should be reported as income before special deductions?

a.$525,000
b.$505,000
c.$275,000
d.$250,000
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