LESSON 6, PROBLEM #3 Assumptions: The stock of ChadCo is owned equally by two shareholders: SecondCo a corporation) and Arnold (an individual). ChadCo and SecondCo use the accrual method, Arnold uses the cash method. All use a calendar taxable year. Assume $ 1059 does not apply. Use a 34 percent corporate tax rate in this problem. During the current year, ChadCo accrued income and expenses as follows: Gross income from business $500,000 Dividends on AT&T stock (consider $ 243) 100,000 nterest on municipal bonds ($ 103) 100,000