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Riverbend Inc. recelved a $222,500 dividend from stock It held In Hobble Corporation. Riverbend's taxable Income Is $2,800,000 before deducting the dividends recelved deduction (DRD),
Riverbend Inc. recelved a $222,500 dividend from stock It held In Hobble Corporation. Riverbend's taxable Income Is $2,800,000 before deducting the dividends recelved deduction (DRD), a $80,000 NOL carryover, and a $147000 charltable contribution. Use Exhlbit 16-6. (Round your tex rates to 1 decimal plece. Leave no answer blank. Enter zero If applicable.) Dividends Received Deductionn Percentage A0% Receiving Corporation's Stock Ownership in Distributing Corporation's Stock Less than 20 percent At least 20 percent but less than 80 percent 80 percent or more 63 100 a. What Is Riverbend's deductible DRD assuming It owns 10 percent of Hobble Corporation? Answer is complete and correct. RD S 111,250 b. Assuming the facts in part (a), what is Riverbend's effective tax rate on the dividend? fective tax rate c. What Is Riverbend's DRD assuming it owns 79 percent of Hobble Corporation? DRD d. Assuming the facts In part (c), what is Riverbend's marginal tax rate on the dividend? Marginal tax rate e. What is Riverbend's DRD assuming it owns 95 percent of Hobble Corporation (and is part of the same affillated group)? DRD t. Assuming the facts in part (e), what is Riverbend's marginal tax rate on the dividend? Marginal tax rate
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