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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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Answer:

a. It relates to fraudulent contracts

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The statue of frauds refers to the contract which have legal existence and should be in writing so that the parties to the contract should be bounded to the contract and fulfill their conditions mentioned in the question

It purpose is to detect

It mainly uses for MY LEGS which means that

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The conditions are as follows

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What are the two most important variables for determining resource allocation?
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A family's ability to buy goods and services depends largely on its permanent income, which is its normal, or average, income. p
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Accounts payable is​ a: A. current liability. B. current asset. C. longminusterm liability. D. longminusterm asset.
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To encourage employee ownership of the company's common shares, KL Corp. permits any of its employees to buy shares directly fro
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Answer:

Dr Cash 105,600

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Explanation:

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