Porto Corporation received $$54,000$ of dividend income from Seville, Incorporated. Porto owns $5$ percent of the outstanding stock of

Seville. Porto's marginal tax rate is $21$ percent. Assume both companies are U$.$S$.$ corporations.

Required:

a$.$ Calculate Porto's allowable dividends$-$received deduction and its after$-$tax cash flow as a result of the dividend from Seville.

b$.$ How would your answers to requirement a change if Porto owned $55$ percent of the stock of Seville?

c$.$ How would your answers to requirement a change if Porto owned $85$ percent of the stock of Seville?

Complete this question by entering your answers in the tabs below.

Calculate Porto's allowable dividends$-$received deduction and its after$-$tax cash flow as a result of the dividend from Seville.

Amount

Dividends$-$received deduction

After$-$tax cash flow