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.