<span>Buyer normally pays the transportation costs</span>
Answer:
Consider the following explanation
Explanation:
Foreign tax credit allowable is the minimum of Federal Income Tax and Income tax paid in foreign country. Here, Jimenez had paid 40% (2,000,000/5,000,000) income tax in foreign country. So. Jimenez will only be eligible to take foreign tax credit of 1,050,000 i.e. 5,000,000 * 21% and there will be carryover of $950,000 (2,000,000 - 1,050,000) foreign taxes.
There is carryover tax when we cannot use the whole amount of foreign tax credit in the current year and the balance foreign tax is carried over to future years.
Answer:
Memorial Hospital
From the information on how much the hospital is losing on deliveries, the change in profit for each extra delivery is:
= 16.3%.
Explanation:
a) Data and Calculations:
Average cost of deliveries = $5,000
Average revenue per delivery = $4,300 ($5,000 - $700)
Loss on each delivery = $700
The change in profit for each extra delivery is
= 16.3% ($700/$4,300 * 100)
b) The implication of the above information is that the hospital is losing 16.3% each time it performs a delivery because it cost it $5,000 while it can only receive $4,300 from each patient delivered.
