Problem related to dividends received deduction

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Red Corporation, which owns stock in Blue Corporation, had net operating income of $400,000 for the year. Blue pays Red a dividend of $60,000. Red takes a dividends received deduction of $48,000. Which of the following statements is correct?

a. Red owns less than 20% of Blue Corporation.

b. Red owns 20% or more, but less than 80% of Blue Corporation.

c. Red owns 80% of Blue Corporation.

d. Red owns 80% or more of Blue Corporation.

e. None of the above.

Reference no: EM13154942

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