Eagle Corporation, a Calendar Year C Corporation, Owns Stock in Hawk

Multiple Choice

Eagle Corporation, a calendar year C corporation, owns stock in Hawk Corporation and has taxable income of $100,000 for the year before considering the dividends received deduction. In the current year, Hawk Corporation pays Eagle a dividend of $130,000, which was considered in calculating the $100,000. What amount of dividends received deduction may Eagle claim if it owns 15% of Hawk's stock?

A) $0
B) $50,000
C) $65,000
D) $84,500
E) None of the above