Riverbend Inc. received a $332,500 dividend from stock it held in Hobble Corporation. Riverbend's taxable income is $2,260,000 before deducting the dividends-received deduction (DRD), a $81,000 NOL carryover, and a $128,000 charitable contribution.

c. What is Riverbends DRD assuming it owns 50 percent of Hobble Corporation?

$216125

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

?

e. What is Riverbends DRD assuming it owns 93 percent of Hobble Corporation (and is part of the same affiliated group)?

$332500

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

?

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