Riverbend Inc. received a $222,500 dividend from stock it held in Hobble Corporation. Riverbend's taxable income is $2,800,000 before deducting the dividends received deduction (DRD), a $80,000 NOL carryover, and a $147,000 charitable contribution. UseExhibit 16-6.(Round your tax rates to 1 decimal place. Leave no answer blank. Enter zero if applicable.)

EXHIBIT 16-6 Stock Ownership and Dividends Received Deduction Percentage

Receiving Corporation's Stock Ownership in Distributing Corporation's StockDividends Received Deduction Percentage

Less than20 percent 50%

At least20 percent but less than 80 percent 65

80 percent or more^* 100

* To qualify for the 100 percent dividends received, the receiving and distributing corporations must be in the same affiliated group as described in 1504. The 80 percent ownership requirement is the minimum ownership level required for inclusion in the same affiliated group.

a. What is Riverbend's deductible DRD assuming it owns 10 percent of Hobble Corporation?

b.Assuming the facts in part (a), what is Riverbend's marginal tax rate on the dividend?

c.What is Riverbend's DRD assuming it owns 79 percent of Hobble Corporation?

d.Assuming the facts in part (c), what is Riverbend's marginal tax rate on the dividend?

e.What is Riverbend's DRD assuming it owns 95 percent of Hobble Corporation (and is part of the same affiliated group)?

f.Assuming the facts in part (e), what is Riverbend's marginal tax rate on the dividend?