Griffin Corporation received $84,000 of dividend income from Eagle, Inc. Griffin owns 6 percent of the outstanding stock of Eagle. Griffins marginal tax rate is 21 percent.

Required: Calculate Griffins allowable dividends-received deduction and its after-tax cash flow as a result of the dividend from Eagle.

How would your answers to requirement a change if Griffin owned 55 percent of the stock of Eagle?

How would your answers to requirement b change if Griffin owned 80 percent of the stock of Eagle?