During the current year, Coyote Corporation (a calendar year C corporation) has the following transactions:
Income from operations $260,000
Expenses from operations 285,000
Dividends received from Roadrunner Corporation 115,000
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?