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Problem 11-30 (Algo) [LO 11-2] Griffin Corporation received $90,000 of dividend income from Eagle, Incorporated. Griffin owns 5 percent of the outstanding stock of
Problem 11-30 (Algo) [LO 11-2] Griffin Corporation received $90,000 of dividend income from Eagle, Incorporated. Griffin owns 5 percent of the outstanding stock of Eagle. Griffin's marginal tax rate is 21 percent. Required: a. Calculate Griffin's allowable dividends-received deduction and its after-tax cash flow as a result of the dividend from Eagle. b. How would your answers to requirement a change if Griffin owned 55 percent of the stock of Eagle? c. How would your answers to requirement a change if Griffin owned 85 percent of the stock of Eagle? Complete this question by entering your answers in the tabs below. Required A Required B Required C How would your answers to requirement a change if Griffin owned 55 percent of the stock of Eagle? Dividends received deduction Amount After-tax cash flow
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