In 2017 New Jesery Inc a calendar year taxpayer has the foll

In 2017, New Jesery, Inc. (a calendar year taxpayer) has the following income and expenses:

Gross income from operations $550000

Expenses from operations $400000

Dividends received from IBM stock investment (15% ownership) $100000

New Jeresy, Inc\'s dividends received deduction for 2017 will be:

a. $70000

b.$175000

c.150000

d.100000

e. some other amount____________

ans is D

As it doesn\'t matters how much percentage of stake New Jersey has in IBM, as total dividends value is given.

It would have affected if total IBM dividend be given, say X then 0.15*X would have been the ownership of New Jersey inc.