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

Question 120

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During the current year, Coyote Corporation (a calendar year C corporation) has the following transactions:  Income from operations $260,000 Expenses from operations 305,000 Dividends received from Roadrunner Corporation 115,000\begin{array}{lc}\text { Income from operations } & \$ 260,000 \\\text { Expenses from operations } & 305,000 \\\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?

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