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Nostrana [21]
3 years ago
11

Taxpayer L has income of $55,000 from Norway, which imposes a 40 percent income tax, and income of $45,000 from France, which im

poses a 30 percent income tax. L has additional taxable income from U.S. sources of $200,000 and U.S. tax liability before credits of $105,000. What is the amount of the foreign tax credit?
Business
1 answer:
saveliy_v [14]3 years ago
3 0

Answer:

The amount of the foreign tax credit is $52,500

Explanation:

Given:

Income from Norway = $55,000

Income tax in Norway = 40%

Income from France = $45,000

Income tax in France = 30%

Taxable income from U.S. sources = $200,000

U.S. tax liability = $105,000

Tax paid in Norway = $55,000 × 40% = $22,000

Tax paid in France = $45,000 × 30% = $13,500

Foreign tax credit = (Net foreign income ÷ U.S. taxable income) × U.S. tax liability

= ($100,000 ÷ $200,000) × $105,000

= $52,500

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Fiscal policy is defined as changes in federal ________ and ________ to achieve macroeconomic objectives such as price stability
wariber [46]

Answer:

expenditures and taxes

Explanation:

Fiscal policy refers to a government action to adjust taxes and expenditures to influence economic growth. Taxes are the main sources of income for the government. A rise in taxes increases revenue to the government but lower individual disposable income. High taxes discourage investments and business expansion.

Government expenditure in infrastructure and other projects creates employment and incomes in the economy. Reduced spending by the government may result in a lower aggregate demand. The government uses fiscal policies together with monetary policies to achieve its economic goals.

5 0
3 years ago
A marketing plan refers to:_______
Alex73 [517]

Answer:

e. a road map for the marketing activities of an organization for a specified future time period, such as one year or five years.

Explanation:

A company's marketing plan generally involves specific periods of time, and usually last more than one year, but they aren't long enough to be considered as long term goals (more than 5 years). They follow the company's marketing strategies (long term goals), coordinate marketing activities and set short term goals.

5 0
3 years ago
8.Kline and Salomon form the KS Partnership as 50/50 partners. Kline contributes equipment that has a fair market value of $60,0
mojhsa [17]

Answer: $40,000

Explanation:

Kline brings in equipment that is worth $60,000 but has a basis of $45,000.

The equipment however is subject to a loan of $10,000.

This loan will have to be deducted from the basis. The partnership however is assuming the loan and Kline is only 50% liable in the partnership so Kline's basis will only be affected by half of the loan.

Basis = 45,000 - 5,000

= $40,000

5 0
3 years ago
Builder and Owner agree that Builder will erect a fence for Owner for $1,500. Builder claims that the fence is taking longer tha
artcher [175]

Answer:

Owner owes Builder : B. $2,000.

Explanation:

A Liability is the present obligation of the entity, that arises as a result of past events, the settlement of which is expected to result in a cash outflow from the entity.

Initially, the Owners owes the Builder $,1500

For the fence to be completed on time, an addition of $500 was owed, upon the owner accepting this arrangement.

Thus, the total obligation owing to the Builder is $2,000.

3 0
2 years ago
Utility costs that relate to current year's operations but are not paid until the following year require:______
motikmotik

Utility costs that relate to current year's operations but are not paid until the following year require:

  • a debit to Utilities Expense
  • a credit to Utilities Payable

<h3>What happens when expenses are not paid?</h3>

Expenses are meant to be paid within the accounting period that they occur and if this does not happen, then they are to be treated as current liabilities in the Balance sheet.

This means that the Utilities Expense account will be debited as is the norm but the account that will then be credited is the Utilities Payable account which is a current liability.

Options for this question:

(Select all that apply.)

  • a debit to Prepaid Expense - Utilities
  • a debit to Utilities Expense
  • no journal entry
  • a credit to Utilities Payable
  • a credit to Cash

Find out more on recording expense payables at brainly.com/question/16781277

#SPJ1

3 0
1 year ago
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