Marathon Inc. $($a C corporation$)$ reported $$1,000,000$ of taxable income in the current year. During the year, it distributed $$100,000$ as dividends to its shareholders as

follows:

tax forms

$$5,000$ to Guy, a $5$ percent individual shareholder.

$$15,000$ to Little Rock Corp., a $15$ percent shareholder $($C corporation$).$

$$80,000$ to other shareholders.

a$)$ How much of the dividend payment did Marathon deduct in determining its taxable income?

b$)$ Assuming Guy's marginal ordinary tax rate is $37$ percent, how much tax will he pay on the $$5,000$ dividend he received from Marathon Inc. $($including the net investment

income tax$)?$

c$)$ What amount of tax will Little Rock Corp. pay on the $$15,000$ dividend it received from Marathon Inc. $(50$ percent dividends$-$received deduction$)?$