Answer:
A. = (15% X $2M) + (21% X $2M) = $720,000. Since there is no mechanism for mitigating double taxation, the branch profit will be taxed on the to tax rate of 15% and 21% which is $300,000 and $420,000.
B. The total tax for $2m branch profit if US corporations can remove foreign based profit from US taxation will be just the 15% x $2m = $300,000.
C.If they are allowed to take deductions for foreign income taxes, the total tax on the $2m branch profit will be (21% -15%) x $2m = $120,000.
Explanation:
D.1. If credit are allowed for foreign income tax paid, total tax will be ($2m - $300,000 been foreign tax paid) x 21% = $357,000
D.2.
If the charge foreign income taxes at 30% and US corporations can claim refundable credit for foreign income tax paid on foreign source income = ($2m - $300,000 been the foreign income tax paid) = $1 700,000 x 30% = $510,000
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Answer:
The correct answer is C.
Explanation:
Giving the following information:
Fixed manufacturing overhead cost of $497,000, variable manufacturing overhead of $2.40 per direct labor-hour, and 70,000 direct labor-hours.
T 498:
Total direct labor-hours 80
First, we need to calculate the estimated manufacturing overhead rate for the period:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= (497,000/70,000) + 2.4= $9.5 per direct labor hour.
Now we can allocate the overhead to Job 498:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 9.5*80= $760
Answer:
B. You need a separate W-2 form from EACH of your employers in order to file your taxes.
Explanation:
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
In order to ensure that, all employees pay taxes on the income earned throughout the year, the internal revenue service (IRS) has made it compulsory and mandatory for all employers to make available a W-2 Form to all their employees, so as to enable these employees fill out the total amount of wages, how much income tax is to be withheld from their respective paycheck in relation to their filing status and how much was paid as tax the previous year. Therefore, a W-2 form is used by an employer to report the wages paid to each employee, calculate how much tax should be withheld from his or her employee's paycheck and submitted to the internal revenue service (IRS).
Additionally, any employee who defaults in the payment of his or her income tax would be faced with stiff penalties such as failure-to-file, paying a fine etc.
Hence, the true statement regarding a W-2 form is that, as an employer you need a separate W-2 form from each of your employers in order to file your taxes.
Answer:
<u>$38.5 million</u>
Explanation:
Since the April Wood incoming transactions-accounts receivable increased by 4 million we obtain the cash value by substracting the question total accounts receivable value from the sales.
Where;
sales= $42.5 million
accounts receivable increase= $4 million
Amount of cash April Wood Products received from customers during the reporting period=
$42.5 million - $4 million= $38.5 million
