Marathon Inc. (a C corporation) reported $1,150,000 of taxable income in the current year. During the year, it distributed $340,000 as dividends to its shareholders as follows: (Leave no answer blank. Enter zero if applicable.)

$17,000 to Guy, a 5 percent individual shareholder.

$51,000 to Little Rock Corp., a 15 percent shareholder (C corporation).

$272,000 to other shareholders.

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

Assuming Guys marginal ordinary tax rate is 35 percent, how much tax will he pay on the $17,000 dividend he received from Marathon Inc. (including the net investment income tax)?

Assuming Little Rock Corp.s marginal tax rate is 34 percent, what amount of tax will it pay on the $51,000 dividend it received from Marathon Inc. (70 percent dividends received deduction)?

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Marathon Inc. (a C corporation) reported $1,150,000 of taxable income in the current year. During the year, it distributed $340,000 as dividends to its shareholders as follows: (Leave no answer blank. Enter zero if applicable.)

$17,000 to Guy, a 5 percent individual shareholder.

$51,000 to Little Rock Corp., a 15 percent shareholder (C corporation).

$272,000 to other shareholders.

e-1. On what line of Little Rock Corp.s Form 1120 page 1 is the dividend from Marathon Inc. reported?

e-2. On what line of Little Rock Corp.s Form 1120 is its dividends received deduction reported?

e-1.	Little Rock Corp. will report the dividend on Form 1120, page 1, line
e-2.	Little Rock Corp. will report its dividends received deduction on Form 1120, page 1, line

a.	Amount deductible
b.	Tax paid
c.	Tax paid