Final answer:
Marathon deducts a portion of the dividend payment it receives to determine its taxable income. The amount of the deduction depends on the applicable tax laws and regulations.
Step-by-step explanation:
In determining its taxable income, Marathon deducts a portion of the dividend payment it receives. The amount of the deduction depends on the applicable tax laws and regulations. However, it's important to note that not all dividend payments are deductible for tax purposes.
For example, if Marathon received a dividend payment of $10,000 and the tax law allows for a 50% deduction, Marathon would deduct $5,000 from its taxable income. This deduction helps reduce the tax liability of the company.
It's also worth mentioning that there may be certain limitations and restrictions on the deductibility of dividend payments, such as the percentage of ownership in the company paying the dividend or the length of time the stock has been held.