Question: Champ received a $ 1 0 , 0 0 0 distribution from NeatCo, a U . S . Ccorporation. NeatCo's earnings and profits for the

Champ received a $10,000 distribution from NeatCo, a U.S. Ccorporation. NeatCo's earnings and profits for the yeartotaled$6,000. How much dividend income does Champ recognize? WhatFederal tax rate applies to the dividend if Champ's ordinary incomeis subject to a 15% tax rate? A 33% tax rate?

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