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Angelina_Jolie [31]
2 years ago
14

FORco, a country F corporation, wants to open a sales office in the United States. FORco does not form a U.S. subsidiary, but in

stead operates in the U.S. as a branch. Country F does not have a income tax treaty with the U.S. If FORco loans operating funds to the U.S. branch, when the U.S. branch makes interest payment to FORco, the interest payment will be subject to:____.
Business
1 answer:
wariber [46]2 years ago
6 0

Answer:

C. Subject to 30% withholding tax under the Branch Interest Withholding tax rules.

Explanation:

Options are <em>"A. No interest withholding as the interest is deemed paid by the foreign corporation, since the U.S. branch is not a U.S. corporation. B. No interest withholding tax since the recipient of the interest is a foreign corporation. C. Subject to 30% withholding tax under the Branch Interest Withholding tax rules. D. Subject to 15% withholding tax under the Branch Profits tax rules. Reset Selection"</em>

The interest payment will be subject to 30% withholding tax under the Branch Interest Withholding tax rules. Interest paid by a branch's U.S. trade or business, is considered U.S. source income and is subject to U.S. withholding tax at a rate of 30%, unless the tax is reduced or eliminated by a specific treaty or Code provision.

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The 10% bonds payable of Nixon Company had a net carrying amount of $950,000 on December 31, 2014. The bonds, which had a face v
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Answer:

The loss is $63,000.

Explanation:

The loss on the retirement of bond is the difference between the retirement value of the bond and the book value of the bond. It is calculated as follows.

Calculation of loss on retirement of bond:

Retirement value of bonds ($1,000,000 x 102 / 100)          $1,020,000

Interest payment ($1,000,000 x 10% x 6/12)                        $50,000

Interest expense ($950,000 x 12% x 6/12)                           $57,000

Amortization of bond discount ($57,000 - $50,000)          $7,000

Debit balance in bond discount ($50,000 - $7,000)           $43,000

Credit balance in accounts payable                                      $1,000,000

Book value of bond ($1,000,000 - $43,000)                        $957,000

Loss on retirement of bond ($1,020,000 - $957,000)       $63,000

7 0
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A manager attempting to take credit for a subordinate's ideas is engaging in a type of _____
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A company has designed a new product and tested the prototype. what is the next step in product development?
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Answer:

A company has designed a new product and tested the prototype. What is the next step in product development ? Test - market the product.

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5 0
3 years ago
If a store adds 50 chairs to its current inventory, the total number of chairs will be the same as three-halves the current inve
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To answer this item, we let x be the current number of chairs. After adding 50 chairs to the current inventory, the total number of chairs would then be equal to x + 50. The equation that would allow us to determine the value of x is written below.

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Dividing both sides of the equation by -1/2, the value of x is equal to 100. 

To increase the inventory by 40%, the equation would be,
    y = x(1.4) = 1.4(100) = 140

<em>ANSWER: 140 chairs</em>
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