Missing information:
Corporate Income Tax Rates
Taxable Income Tax
< $50,000 15% of the taxable income
$50,000 - $75,000 $7,500 + 25% of taxable income over $50,000
$75,000 - $100,000 $13,750 + 34% of taxable income over $75,000
$100,000 - $335,000 $22,250 + 39% of taxable income over $100,000
$335,000 - $10 million $113,900 + 34% of taxable income over $335,000
$10 - $15 million $3,400,000 + 35% of taxable income over $10 million
$15 million - $18,333,333 $5,150,000 + 38% of taxable income over $15,000,000
Over $18,333,333 35% of the taxable income
Answer:
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?
