Red Corporation,which Owns Stock in Blue Corporation,had Net Operating Income

Multiple Choice

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.