Riverbend Inc. received a $367,500 dividend from stock it heldin Hobble Corporation. Riverbend's taxable income is $2,450,000before deducting the dividends received deduction (DRD), a $60,500NOL carryover, and a $138,000 charitable contribution. Use Exhibit16-6. (Round your tax rates to 1 decimal place. Leave noanswer blank. Enter zero if applicable.)
a. What is Riverbend’s deductible DRD assumingit owns 10 percent of Hobble Corporation?
b. Assuming the facts in part (a), what isRiverbend’s effective tax rate on the dividend?
c. What is Riverbend’s DRD assuming it owns 36percent of Hobble Corporation?
d. Assuming the facts in part (c), what isRiverbend’s marginal tax rate on the dividend?
