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Griffin Corporation received $54,000 of dividend income from Eagle, Inc. Griffin owns 5 percent of the...

Griffin Corporation received $54,000 of dividend income from Eagle, Inc. Griffin owns 5 percent of the outstanding stock of Eagle. Griffin’s marginal tax rate is 21 percent.

Calculate Griffin’s allowable dividends-received deduction and its after-tax cash flow as a result of the dividend from Eagle

How would your answers to requirement a change if Griffin owned 55 percent of the stock of Eagle?

How would your answers to requirement b change if Griffin owned 85 percent of the stock of Eagle?

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