Marathon Inc. (a C corporation) reported $2,100,000 of taxable income in the current year. During the year, it distributed $210,000 as dividends to its shareholders as follows:

• $10,500 to Guy, a 5 percent individual shareholder.
• $31,500 to Little Rock Corp., a 15 percent shareholder (C corporation).
• $168,000 to other shareholders.

• A. How much of the dividend payment did Marathon deduct in determining its taxable income?
• B. Assuming Guys marginal ordinary tax rate is 37 percent, how much tax will he pay on the $10,500 dividend he received from Marathon Inc. (including the net investment income tax)?
• C. What amount of tax will Little Rock Corp. pay on the $31,500 dividend it received from Marathon Inc. (50 percent dividends received deduction)?
• D. On what line on page 1 of Little Rock Corp.s Form 1120 is the dividend from Marathon Inc. reported?

• E. On what line on page 1 of Little Rock Corp.s Form 1120 is its dividends received deduction reported? (Assume 2020 form is same structure as 2019 form.)