# Help asap

shanda
 Marathon Inc. (a C corporation) reported \$1,000,000 of taxable income in the current year. During the year, it distributed \$100,000 as dividends to its shareholders as follows: •   \$5,000 to Guy, a 5 percent individual shareholder. •   \$15,000 to Little Rock Corp. a 15 percent shareholder (C corporation). •   \$80,000 to other shareholders.

1.
award:
10 out of
10.00 points

 a. How much of the dividend payment did Marathon deduct in determining its taxable income? (Omit the "\$" sign in your response.)

 Amount deductible \$ 0

 b. Assuming Guy’s marginal ordinary tax rate is 35 percent, how much tax will he pay on the \$5,000 dividend he received from Marathon Inc.? (Omit the "\$" sign in your response.)

 Amount deductible \$ 750

 c. Assuming Little Rock Corp.’s marginal tax rate is 34 percent, what amount of tax will it pay on the \$15,000 dividend it received from Marathon Inc. (70 percent dividends received deduction)? (Omit the "\$" sign in your response.)

 Amount deductible \$ 1,530

• 8 years ago
• 5