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63. [LO 2] Riverbend Inc. received a $200,000 dividend from stock it held in Hobble Corporation. Riverbend's taxable income is $2,100,000 before deducting the
63. [LO 2] Riverbend Inc. received a $200,000 dividend from stock it held in Hobble Corporation. Riverbend's taxable income is $2,100,000 before deducting the dividends received deduction (DRD), a $40,000 NOL carryover, a $10,000 domestic production activities deduction, and a $100,000 charitable contribution. a. What is Riverbend's deductible DRD assuming it owns 10 percent of Hobble Corporation? b. Assuming the facts in part a, what is Riverbend's marginal tax rate on the dividend? c. What is Riverbend's DRD assuming it owns 60 percent of Hobble Corporation? d. Assuming the facts in part c, what is Riverbend's marginal tax rate on the dividend? e. What is Riverbend's DRD assuming it owns 85% of Hobble Corporation (and is part of the same affiliated group)? f. Assuming the facts in part e, what is Riverbend's marginal tax rate on the dividend?
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