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Required information [The following information applies to the questions displayed below.] Marathon Incorporated (a C corporation) reported $1,400,000 of taxable income in the current year.
Required information [The following information applies to the questions displayed below.] Marathon Incorporated (a C corporation) reported $1,400,000 of taxable income in the current year. During the year, it distributed $140,000 as dividends to its shareholders as follows: - $7,000 to Guy, a 5 percent individual shareholder. - \$21,000 to Little Rock Corporation, a 15 percent shareholder (C corporation). - $112,000 to other shareholders. Note: Leave no answer blank. Enter zero if applicable. Required: a. How much of the dividend payment did Marathon deduct in determining its taxable income? b. Assuming Guy's marginal ordinary tax rate is 37 percent, how much tax will he pay on the $7,000 dividend he received from Marathon Incorporated (including the net investment income tax)? c. What amount of tax will Little Rock Corporation pay on the $21,000 dividend it received from Marathon Incorporated (50 percent dividends-received deduction)? Note: Round your final answers to the nearest whole dollar amounts
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