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Required information [The following information applies to the questions displayed below.] Marathon Inc. (a C corporation) reported $2,150,000 of taxable income in the current year.
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[The following information applies to the questions displayed below.]
Marathon Inc. (a C corporation) reported $2,150,000 of taxable income in the current year. During the year, it distributed $215,000 as dividends to its shareholders as follows:(New Corporate income tax rate has been mentioned as "21% on all taxable income" as per the recent change.Leave no answer blank. Enter zero if applicable.)
- $10,750 to Guy, a 5 percent individual shareholder.
- $32,250 to Little Rock Corp., a 15 percent shareholder (C corporation).
- $172,000 to other shareholders.
- How much of the dividend payment did Marathon deduct in determining its taxable income?
- Assuming Guy's marginal ordinary tax rate is 37 percent, how much tax will he pay on the $10,750 dividend he received from Marathon Inc. (including the net investment income tax)?
- What amount of tax will Little Rock Corp. pay on the $32,250 dividend it received from Marathon Inc. (50 percent dividends received deduction)?
- (Round your final answers to the nearest whole dollar amounts.)
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