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Griffin Corporation received $88,000 of dividend income from Eagle, Inc. Griffin owns 5 percent of the outstanding stock of Eagle. Griffins marginal tax rate is

Griffin Corporation received $88,000 of dividend income from Eagle, Inc. Griffin owns 5 percent of the outstanding stock of Eagle. Griffins marginal tax rate is 21 percent.

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  1. Calculate Griffins allowable dividends-received deduction and its after-tax cash flow as a result of the dividend from Eagle.
  2. How would your answers to requirement a change if Griffin owned 55 percent of the stock of Eagle?
  3. How would your answers to requirement b change if Griffin owned 85 percent of the stock of Eagle?

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