EXHIBIT 16-6 Stock Ownership and Dividends Received Deduction Percentage | Receiving Corporation's Stock Ownership in Distributing Corporation's Stock Less than 20 percent At least 20 percent but less than 80 percent 80 percent or more Dividends Received Deduction Percentage 50% 65 100 * To qualify for the 100 percent dividends received the receiving and distributing corporations must be in the same affiliated group as described in $1504. The 80 percent ownership requirement is the minimum ownership level required for inclusion in the same affiliated group. Required information The following information applies to the questions displayed below.] Riverbend Inc. received a $277,500 dividend from stock it held in Hobble Corporation. Riverbend's taxable income is $2,970,000 before deducting the dividends received deduction (DRD), a $59,500 NOL carryover, and a $127,000 charitable contribution. Use Exhibit 16-6. (Round your tax rates to 1 decimal place. Leave no answer blank. Enter zero if applicable.) a. What is Riverbend's deductible DRD assuming it owns 10 percent of Hobble Corporation? DRD Required information [The following information applies to the questions displayed below.) Riverbend Inc. received a $277,500 dividend from stock it held in Hobble Corporation. Riverbend's taxable income is $2.970,000 before deducting the dividends received deduction (DRD), a $59,500 NOL carryover, and a $127,000 charitable contribution. Use Exhibit 16-6. (Round your tax rates to 1 decimal place. Leave no answer blank. Enter zero if applicable.) b. Assuming the facts in part (a), what is Riverbend's marginal tax rate on the dividend? Marginal tax rate c. What is Riverbend's DRD assuming it owns 64 percent of Hobble Corporation? DRD d. Assuming the facts in part (c), what is Riverbend's marginal tax rate on the dividend? Marginal tax rate e. What is Riverbend's DRD assuming it owns 94 percent of Hobble Corporation (and is part of the same affiliated group)? DRD