Riverbend Inc. received a $327,500 dividend from stock it held in Hobble Corporation. Riverbend's taxable income is $2,200,000 before deducting the dividends received deduction (DRD), a $62,500 NOL carryover, and a $148,000 charitable contribution.

EXHIBIT 16-6 Stock Ownership and Dividends Received Deduction Percentage

Receiving Corporations Stock Ownership in Distributing Corporations Stock	Dividends Received Deduction Percentage
Less than 20 percent	50%
At least 20 percent but less than 80 percent	65
80 percent or more*	100

a. What is Riverbends deductible DRD assuming it owns 10 percent of Hobble Corporation?

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

c. What is Riverbends DRD assuming it owns 76 percent of Hobble Corporation?

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

e. What is Riverbends DRD assuming it owns 91 percent of Hobble Corporation (and is part of the same affiliated group)?

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