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James, who is in the 35 percent marginal tax bracket with a 15 percent tax rate on dividends, owns 100 percent of the stock of

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James, who is in the 35 percent marginal tax bracket with a 15 percent tax rate on dividends, owns 100 percent of the stock of JJ Inc. This year, JJ generates $337,000 taxable income and pays a $67,400 dividend to James Compute his tax on the dividend under each of the following assumptions: Required: a. The special qualified dividend tax rate provided above applies to the dividend payment Complete this question by entering your answers in the tabs below. Required A Compute his tax on the dividend assuming the federal tax rules currently in effect apply to the dividend payment. Tax on the dividend Corporation AB's marginal tax rate is 15 percent, and Corporation YZ's marginal tax rate is 21 percent Required: a. if both corporations are entitled to an additional $5,800 deduction, how much tax savings will the deduction generate for each corporation? b. If both corporations are entitled to a $5,800 tax credit, how much tax savings will the credit generate for each corporation? (Assume that each corporation's precredit tax exceeds $5,800.) Complete this question by entering your answers in the tabs below. Required A Required B If both corporations are entitled to an additional $5,800 deduction, how much tax savings will the deduction generate for each corporation? Corporation AB Corporation YZ Tax Savings Required 8 > Corporation AB's marginal tax rate is 15 percent, and Corporation YZ's marginal tax rate is 21 percent. Required: a. If both corporations are entitled to an additional $5,800 deduction, how much tax savings will the deduction generate for each corporation? b. if both corporations are entitled to a $5,800 tax credit, how much tax savings will the credit generate for each corporation? (Assume that each corporation's precredit tax exceeds $5,800) Complete this question by entering your answers in the tabs below. Required A Required B If both corporations are entitled to a $5,800 tax credit, how much tax savings will the credit generate for each corporation? (Assume that each corporation's precredit tax exceeds $5,800.) Corporation AB Corporation YZ Tax savings Required A

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