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Marathon Inc. (a C corporation) reported $1,700,000 of taxable income in the current year. During the year, it distributed $170,000 as dividends to its shareholders
Marathon Inc. (a C corporation) reported $1,700,000 of taxable income in the current year. During the year, it distributed $170,000 as dividends to its shareholders as follows: (New Corporate income tax rate has been mentioned as "21% on all taxable income" as per the recent change. Leave no answer blank. Enter zero if applicable.)
- $8,500 to Guy, a 5 percent individual shareholder.
- $25,500 to Little Rock Corp., a 15 percent shareholder (C corporation).
- $136,000 to other shareholders.
- How much of the dividend payment did Marathon deduct in determining its taxable income?
- Assuming Guys marginal ordinary tax rate is 37 percent, how much tax will he pay on the $8,500 dividend he received from Marathon Inc. (including the net investment income tax)?
- What amount of tax will Little Rock Corp. pay on the $25,500 dividend it received from Marathon Inc. (50 percent dividends received deduction)? (Round your final answers to the nearest whole dollar amounts.)
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