Question: In 1992, the Billy Bob Corporation had $4,000,000 in sales, $800,000 in dividends from a 70 percent owned subsidiary, $1,100,000 in cost of goods sold and $1,500,000 in operating expenses.
a. Determine Billy Bob's likely dividend received deduction (5).
b. Determine Billy Bob's likely dividend received deduction if operating expenses are $1,300,000 rather than $1,900,000 (5).
c. What happens to the unused dividend received deduction if the limitation applies.