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53. Marathon Inc. (a C corporation) reported $1,000,000 of taxable income in the current year. During the year, it distributed $100,000 as dividends to its

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53. Marathon Inc. (a C corporation) reported $1,000,000 of taxable income in the current year. During the year, it distributed $100,000 as dividends to its shareholders as follows: - $5,000 to Guy, a 5 percent individual shareholder. - $15,000 to Little Rock Corp., a 15 percent shareholder (C corporation). - $80,000 to other shareholders. a) How much of the dividend payment did Marathon deduct in determining its taxable income? b) Assuming Guy's marginal ordinary tax rate is 37 percent, how much tax will he pay on the $5,000 dividend he received from Marathon Inc. (including the net investment income tax)? c) What amount of tax will Little Rock Corp. pay on the $15,000 dividend it received from Marathon Inc. ( 50 percent dividends-received deduction)? d) Complete Form 1120 Schedule C for Little Rock Corp. to reflect its dividends-received deduction (use the most recent Form 1120 Schedule C available). e) On what line on page 1 of Little Rock Corp.'s Form 1120 is the dividend from Marathon Inc. reported, and on what line of Little Rock Corp.'s Form 1120 is its dividends-received deduction rannotad? 53. Marathon Inc. (a C corporation) reported $1,000,000 of taxable income in the current year. During the year, it distributed $100,000 as dividends to its shareholders as follows: - $5,000 to Guy, a 5 percent individual shareholder. - $15,000 to Little Rock Corp., a 15 percent shareholder (C corporation). - $80,000 to other shareholders. a) How much of the dividend payment did Marathon deduct in determining its taxable income? b) Assuming Guy's marginal ordinary tax rate is 37 percent, how much tax will he pay on the $5,000 dividend he received from Marathon Inc. (including the net investment income tax)? c) What amount of tax will Little Rock Corp. pay on the $15,000 dividend it received from Marathon Inc. ( 50 percent dividends-received deduction)? d) Complete Form 1120 Schedule C for Little Rock Corp. to reflect its dividends-received deduction (use the most recent Form 1120 Schedule C available). e) On what line on page 1 of Little Rock Corp.'s Form 1120 is the dividend from Marathon Inc. reported, and on what line of Little Rock Corp.'s Form 1120 is its dividends-received deduction ranortad? 53. Marathon Inc. (a C corporation) reported $1,000,000 of taxable income in the current )ear. During the year, it distributed $100.000 as dividends to its shareholders as follows: - $5,000 to Guy, a 5 percent individual shareholder. - $15,000 to Little Rock Corp. a Is percent shareholder (C corporation). - $50.000 to other shareholders. a) How much of the dividend payment did Marathon deduct in determining its taxable incone? b) Assuning Guy's marginal ordinary tax rate is 37 percent, how much tax will he pay on the $5,000 dividend he received from Marathon Inc: (including the net investment income tax )? c) What amount of tax will Little Rock Corp. pay on the $15,000 dividend it received from Marathon Inc. ( 50 percent dividends. received deduction)? d) Complete Form 1120 Schedule C for Limle Rock Corp, to reflect its dividends received deduction (use the most recent Form

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