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Contact [7]
3 years ago
9

The subsidiary of a U.S. corporation located in Country Y generated income of $1,000,000 on which it paid $400,000 (40%) in taxe

s to Country Y. The subsidiary paid a dividend to the U.S. parent of $54,000. How much tax is currently owed to the U.S. government if the federal tax rate is 35%
Business
1 answer:
ollegr [7]3 years ago
7 0

Answer:

The tax currently owed to the U.S. government is:

$18,900

Explanation:

a) Data and Calculations:

Income generated by the foreign subsidiary = $1,000,000

Tax paid by the subsidiary in its country of residence = $400,000

Dividend paid to the U.S. parent = $54,000

Federal tax rate = 35%

Tax on the dividend = $18,900 ($54,000 * 35%)

b) The dividend of $54,000 is a foreign-source income earned by a U.S. parent corporation.  This is this amount that will be subject to tax in the U.S. and not the net income of the subsidiary.

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The mission statement of your business should contain all of the following elements except the
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not satisfying customer needs on critical factors.

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3 years ago
In the short-run, if there is a surplus in the market for a product, the rationing function of price can be expected to cause:
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Option D

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When a price ceiling is fixed under the equilibrium price, the amount required will pass quantity fulfilled, and excess demand or deficits will result. Price floors block a price from dropping below a reliable level. When a price floor is fixed beyond the equilibrium price, the measure supplied will exceed the quantity needed, and excess stock or surpluses will happen.

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3 years ago
Manufacturing overhead has an underallocated balance of $12,400; raw materials inventory balance is $145,500; work in process in
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Answer:

$182,900

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