Business
Business, 01.07.2020 15:01, kiwipup16

Riverbend Inc. received a $247,500 dividend from stock it held in Hobble Corporation. Riverbend's taxable income is $2,480,000 before deducting the dividends received deduction (DRD), a $52,500 NOL carryover, and a $134,000 charitable contribution. A. What is Riverbend’s deductible DRD assuming it owns 19 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 53 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 90 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?

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Riverbend Inc. received a $247,500 dividend from stock it held in Hobble Corporation. Riverbend's ta...

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