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Required information [The following information applies to the questions displayed below.] Riverbend Inc. received a $402,500 dividend from stock it held in Hobble Corporation. Riverbend's
Required information [The following information applies to the questions displayed below.] Riverbend Inc. received a $402,500 dividend from stock it held in Hobble Corporation. Riverbend's taxable income is $2,950,000 before deducting the dividends received deduction (DRD), a $64,500 NOL carryover, and a $187,000 charitable contribution. Use Exhibit 16-6. (Round your tax rates to 1 decimal place. Leave no answer blank. Enter zero if applicable.) a. What is Riverbend's deductible DRD assuming it owns 10 percent of Hobble Corporation? DRD b. Assuming the facts in part (a), what is Riverbend's effective tax rate on the dividend? 193 Effective tax rate 0 c. What is Riverbend's DRD assuming it owns 37 percent of Hobble Corporation? DRD d. Assuming the facts in part (c), what is Riverbend's marginal tax rate on the dividend? Marginal tax rate 0 0 e. What is Riverbend's DRD assuming it owns 86 percent of Hobble Corporation (and is part of the same affiliated group)? DRD f. Assuming the facts in part (e), what is Riverbend's marginal tax rate on the dividend? Marginal tax rate 0
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