Griffin Corporation received $50,000 of dividend income from Eagle, Inc. Griffin owns 5 percent of the outstanding

Question:

Griffin received $50,000 of income from Eagle, Inc. Griffin owns 5 percent of the outstanding stock of Eagle. Griffin’s marginal tax rate is 35 percent.
a. Calculate Griffin’s allowable dividends-received deduction and its after-tax cash flow as a result of the from Eagle.
b. How would your answers to a change if Griffin owned 55 percent of the stock of Eagle?
c. How would your answers to b change if Griffin owned 85 percent of the stock of Eagle?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...