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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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Hank has a 32% marginal tax rate and has already recognized a STCL of $8,000 and a L TCG of $5,000, both due to the sale of stoc
Ivenika [448]

Answer:

The increase in his tax liability is $1,120

Explanation:

STCL due to sale of stock = $8,000

LTCG due to sale of stock = $5,000

∴Net STCL = $8,000 - $5,000

 Net STCL = $3,000

LTCG on sale of antique clock = $7,000

∴Net LTCG on sale of antique = $7,000 - $3,000 = $4,000

LTCG on sale of antiques is taxed at the rate of 28%

∴ Tax liability = $4,000 * 28%

  Tax liability = $4,000 * 0.28

  Tax liability = $1,120

6 0
2 years ago
13.. Francisco leased equipment from Julio on December 31, 2021. The lease is a 10-year lease with annual payments of $150,000 d
tatuchka [14]

Answer:

$800,239.40

Explanation:

Calculation for the balance in Francisco lease liability at December 31, 2022

First step is to find the Liability for the year end 31st December 2021

Using this formula

Liability as on 31st December 2021=Initial Value of the Liability - Annual Payment

Let plug in the formula

31st December 2021 Liability =$1,013,854-$150,000

Liability as of 31st December 2021=$863,854

Second step is to find Interest for the Year 2022

Interest =$863,854×10%

Interest =$86,385.40

Third step is to less the interest amount from the Annual payment

Annual Payment $150,000- Interest $86,385.40

=$63,614.60

Last step is to find the balance in the lease liability at December 31, 2022

Lease liability balance = $863,854 -$63,614.60

Lease liability balance=$800,239.40

Therefore What should be the balance in Francisco lease liability at December 31, 2022 will be $800,239.40

5 0
2 years ago
A _____ plan gives all employees a minimum level of benefits and a set amount to spend on flexible benefits, such as additional
Katarina [22]

Answer:

Cafeteria Plan

Explanation:

The cafeteria plan is minimum benefits that the employer have to provide or personally provide to all the employees working in its organization. In some jurisdictions like USA and Europe, the employer has to provide minimum level of facilities and benefits to the employee which inculdes healthcare, pension contributions, etc.

5 0
2 years ago
During​ February, assets increased by 87000 and liabilities increased by 31000 . Equity must have:___________.
Pie

Answer:

a. increased by $56,000

Explanation:

General accounting equation ;

Assets = Liabilities + Owners equity

Owners equity = Assets - Liabilities.

Therefore,

Increase in stockholder's equity

= $87,000 - $31,000

= $56,000

3 0
3 years ago
Belinda’s job at the corporate offices of Mobility Car Rental requires her to analyze large amounts of data in order to identify
wolverine [178]

Answer:

The correct answer is: customer relationship management.

Explanation:

Customer Relationship Management (CRM) is a technique by which companies store customers' information in an attempt to identify their buying patterns and to build long-lasting relationships with them. CRM uses Information Technology (IT) software for such studies. Thanks to this system, businesses can provide consumers with products and services that are most likely to satisfy their needs.

8 0
3 years ago
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