1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Paha777 [63]
3 years ago
7

Zenon Inc. has the following taxable income: U.S. source income $ 1,900,000 Foreign source income 240,000 Taxable income $ 2,140

,000 Zenon paid $33,000 foreign income tax. Compute its U.S. income tax, assuming the foreign source income does not qualify as FDII.
Business
1 answer:
Colt1911 [192]3 years ago
5 0

Answer:

The income tax is $81,600

Explanation:

In this question, we are asked to compute the foreign tax income for Zenon Inc assuming the foreign source income does not qualify as FDII

To compute this, we employ a mathematical approach.

Mathematically,

The income paid by Zenon Inc = Foreign credit Tax limitation * Foreign source income/taxable income

We identify the parameters in the equation as follows;

Foreign tax limitation = Taxable income * tax rate

Where the tax rate for the US is 34% or simply 0.34

Foreign tax limitation = 0.34 * 2,140,000 = $727,600

Foreign source income = $240,000

Taxable income = $2,140,000

Income paid = 727,600 * 240,000/2,140,000 = $81,600

You might be interested in
For every decision you make, there is a trade-off.
AleksandrR [38]

Answer:

True

And you know What is the meaning the trade-off?

A decision is made between one or more options. A trade-off is all alternatives given up when choosing one option. The other other alternatives in that decision are the trade-offs. Therefore, every decision involves trade-offs.

Good luck

5 0
3 years ago
Read 2 more answers
Jarrod receives a scholarship of $18,500 from Riggers University to be used to pursue a bachelor's degree. He spends $12,000 on
kodGreya [7K]

Answer:

Jarrod exclude from his gross income of $13,500

Explanation:

The following items which are excluded from the gross income are:

1. Tuition = $12,000

2. Books and supplies = $1,500

The total amount would be equal to

= $12,000 + $1,500

= $13,500

These items would be excluded because the deduction is allowed for these items. Whereas, the room and personal expenses are taxable. Hence, it would be included in the gross income

8 0
3 years ago
ndicate whether each of the following costs should be classified as a product cost or as an SG&A cost in accordance with GAA
Leokris [45]

Answer:

 

Explanation:

The product cost is a combination of direct material cost, direct labor cost, and the manufacturing overhead cost. The manufacturing overhead cost is an indirect cost which is related to the factory expenses.

And, the SG&A cost is a sales, general ,and admin costs incurred to advertise the company's products so that it can accomplish its sales targets which can build a good reputation in the market.

So, the categorization is shown below:

Direct materials used in a manufacturing company. = Product cost

Indirect materials used in a manufacturing company. = Product cost

Salaries of employees working in the accounting department. = sales, general ,and admin costs

Commissions paid to sales staff. = sales, general ,and admin costs

Interest on the mortgage for the company’s corporate headquarters. = sales, general ,and admin costs

Indirect labor used to manufacture inventory. = Product cost

Attorney’s fees paid to protect the company from frivolous law suits. = sales, general ,and admin costs

Research and development costs incurred to create new drugs for a pharmaceutical company. = sales, general ,and admin costs

The cost of secretarial supplies used in a doctor’s office. = sales, general ,and admin costs

Depreciation on the office furniture of the company president. = sales, general ,and admin costs

4 0
3 years ago
The particular market segment your company is trying to sell your products or services to is your _________
dolphi86 [110]

Answer:

Target Market

Explanation:

The target market is the people that a business has identified as potential buyers of its products and services. It is the group of customers that a business targets with its advertising messages. Therefore, the target market is that group of customers that a business expects to buy its products. A target market consists of existing and potential customers.

4 0
2 years ago
Consider four types of markets: monopoly, perfect competition, oligopoly, and monopolistic competition. If they were ranked from
artcher [175]

Answer:

Monopoly

Oligopoly

monopolistic competition

Perfect competition

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.    

A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopolistic competition has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.

examples of monopolistic competition are restaurants  

A monopoly is when there is only one firm operating in an industry. there is usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.

An example of a monopoly is an utility company

An oligopoly is when there are few large firms operating in an industry. there is high barriers to entry and exit of firms

5 0
3 years ago
Other questions:
  • Wesley's grandfather was a sharecropper, farming someone else's land. wesley's father was a farmer who farmed his own land. wesl
    6·1 answer
  • MBO works by objectives moving through the organization; that is, top managers set general organizational objectives, which are
    5·1 answer
  • Ntercon is an Internet-based company that provides online support services for businesses that need help in setting up and maint
    15·1 answer
  • A decrease in supply is caused by:
    11·1 answer
  • Wassenaar Arrangement HIPAA PCI DSS FERPA GLBA SOX A. Provides safeguards for credit card transactions B. controls the way finan
    13·1 answer
  • ) If Denmark wished to keep its exchange rate with the euro fixed, what monetary policy options are available to lower unemploym
    8·1 answer
  • A bond has a yield to maturity (YTM) of 9.00%. If the YTM decreases to 8.90%, then the price of the bond will_____.
    8·1 answer
  • Berkeley Corporation has a policy of furnishing new automobiles to the athletic department of the local university. The automobi
    14·1 answer
  • How would an economy with low unemployment be affected by an increase in individual households incomes?
    11·1 answer
  • Lowden Company has a predetermined overhead rate of 160% and allocates overhead based on direct material cost. During the curren
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!