Choice "B" is correct. The dividends received from Ronald Corp. and Fence Corp. are subject to the 70% DRD (thus 30% would be taxable). The dividends from Donald Corp. are subject to the 80% DRD (thus 20% would be taxable). The total DRD is $11,000 x 70% plus $6,000 x 80%=$12,500.
Choice "c" is incorrect. The receipt of these dividends by Buster-Copper Corp. qualifies for the dividends received deduction.
Choice "a" is incorrect. This amount is obtained by taking the total dividends of $17,000 x 70% DRD; however the Donald Corp. dividends are subject to the 80% DRD.
Choice "d" is incorrect. This amount is obtained by taking the total dividends of $17,000 x 80% DRD; however the Ronald and Fence Co., dividends are only eligible for the 70% DRD.