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Griffin Corporation received $55,000 of dividend income from Eagle, Inc. Griffin owns 6 percent of the outstanding stock of Eagle. Griffins marginal tax rate is
Griffin Corporation received $55,000 of dividend income from Eagle, Inc. Griffin owns 6 percent of the outstanding stock of Eagle. Griffins marginal tax rate is 30 percent.
A. Calculate Griffins allowable dividends-received deduction and its after-tax cash flow as a result of the dividend 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?
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