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Required information [The following information applies to the questions displayed below.] Riverbend Incorporated received a $277,500 dividend from stock it held in Hobble Corporation. Riverbend's
Required information [The following information applies to the questions displayed below.] Riverbend Incorporated received a $277,500 dividend from stock it held in Hobble Corporation. Riverbend's taxable income is $2,970,000 before deducting the dividends- received deduction (DRD), a $59,500 NOL carryover, and a $127,000 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 e. What is Riverbend's DRD assuming it owns 94 percent of Hobble Corporation (and is part of the same affiliated group)? DRD
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