During the Current Year, Coyote Corporation (A Calendar Year C

Essay

During the current year, Coyote Corporation (a calendar year C corporation) has the following transactions:
$\begin{array}{ll}\text { Income from operations } & \$ 260,000 \\\text { Expenses from operations } & 285,000 \\\text { Dividends received from Roadrunner Corporation } & 115,000\end{array}$
a. Coyote owns 5% of Roadrunner Corporation's stock. How much is Coyote Corporation's taxable income (loss) for the year?
b. Would your answer change if Coyote owned 25% of Roadrunner Corporation's stock?