[The following information applies to the questions displayed below.] Marathon Inc. (a C corporation) reported $1,270,000 of taxable income in the current year. During the year, it distributed $130,000 as dividends to its shareholders as follows: (Leave no answer blank. Enter zero if applicable.)

$6,500 to Guy, a 5 percent individual shareholder.

$13,000 to Little Rock Corp., a 10 percent shareholder (C corporation).

$110,500 to other shareholders.

5.

value: 10.00 points

Required information

b. Assuming Guys marginal ordinary tax rate is 35 percent, how much tax will he pay on the $6,500 dividend he received from Marathon Inc. (including the net investment income tax)?

Answer is not 975 (6500*0.15)