Question: Waldo Corporation has recently retained your accounting firm to prepare its income tax return. Art, the partner in charge of the engagement, has assigned you the job of reviewing last year's return and making recommendations on the preparation of this year's return. The only item of concern on the return is a $32,000 dividends received deduction that Waldo claimed on $40,000 in dividends it received from a Swiss corporation in which its owns a $30,000 interest. Write a memorandum to Art with your recommendation on the course of action your firm should take regarding the dividends received deduction.