7.Marathon Inc. (a C corporation) reported $2,500,000 of taxable income in the current year. During the current year, it distributed $250,000 as dividends to its shareholders as follows:

• $50,000 to Guy an individual shareholder.
• $25,000 to Little Rock Corp. a 10% shareholder (C corporation)
• $175,000 to other shareholders.

How much of the dividend payment did Marathon deduct in determining its taxable income?

8.Same facts as Question 7 above. Assuming Guys marginal ordinary tax rate is 37%, how much tax will he pay on the dividend he received from Marathon Inc. (including the net investment income tax)?

9.Same facts as Question 7 above. Assuming Little Rock Corp.s marginal tax rate is 21%, what amount of tax will it pay on the dividend it received from Marathon Inc. (50% dividends received deduction)?