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Valentin [98]
2 years ago
5

Piper, a US citizen owns 100% of the stock of FORco, a foreign manufacturing and sales subsidiary. In 2020, FORco had $10 millio

n of income from the manufacturing and sale of widgets in Europe and paid $3 million in foreign income taxes. FORco distributed no dividends. In January of 2020, FORco invested/deposited $7 million with a US Bank earning 1% annual interest (US sourced income). What are the U.S. tax consequences (if any) to Piper?
Business
1 answer:
ss7ja [257]2 years ago
5 0

Answer:

$70000

Explanation:

We have been give in this question that a 100 percent of FORcos share belongs to piper. He owns a 100 percent fully. Piper has to include that which he deposited. 7 million dollars of 2 percent

= 7million dollars x 1 percent

= 7000000 x 0.01

= $70000

So piper has to include in gross income her share of FORcos f income for investment in united states property and this has been calculated as 70000

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You have just received a windfall from an investment you made in a​ friend's business. She will be paying you $ 39 comma 769 at
Sergio [31]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

She will be paying you $39,769 at the end of this​ year, $79,538 at the end of next​ year, and $119,307 at the end of the year after that​.

The interest rate is 11.7 % per year.

A) We need to use the following formula:

NPV= Cf/[(1+i)^n]

NPV= 39769/1.117^1 + 79538/1.117^2 + 119307/1.117^3

NPV= 184,958.1

B) We need to use the following formula:

FV= PV*(1+i)^n

FV= 287,929.41

8 0
3 years ago
Malinda took a client to dinner meeting. After agreeing to a business deal, they went to see a show. Malinda paid $100 for the m
Paladinen [302]

Answer:

Allowable Business Expense is $50

Explanation:

The entertainment expenses that were paid before the business deal are allowed business expenses and those entertainment expenses that were incurred after the business deal are disallowed business expenses.

So here, the entertainment expense that includes meal which is worth $100 and is the only allowable business expense here that was incurred before the business deal.

The meal with clients are 50% deductible which means only 50% of the $100 is allowed as business expense.

Allowable Business Expense = $100 * 50% = $50

8 0
3 years ago
Armani, the exclusive fashion house, uses the following competitive strategy with the products it sells a. Broad Cost Leadership
frez [133]

Answer:

d. Differentiation

Explanation:

Under differentiation strategy, the company differentiates it's products from those of the competitors by the addition of unique attributes which gradually create brand loyalty for such products.

Product differentiation can be accomplished by different packaging, labeling or using different promotional strategies.

Such differentiation may lead to the brand gaining competitive advantage.

In the given case, Armani employs product differentiation strategy for it's products which are targeted at niche category of customers i.e royal customers.

8 0
3 years ago
Batman parked the Batmobile himself and kept the bat keys. There was no attendant at the lot. Two hours later, Batman left the r
kupik [55]

Answer:

First of all, there was no attendant in the parking lot when batman arrived, meaning that he did not hand the keys. Batman kept the leys to himself all the time, so there is no transfer of possession. Without a valid transfer of possession, bailment cannot exist.  Whether Batman ate at the restaurant or spent time talking to Wonder Woman do not change the facts that the safety of his Batmobile was his responsibility only.

5 0
3 years ago
Sheridan Company began the year with retained earnings of $659000. During the year, the company recorded revenues of $600000, ex
Margarita [4]

Answer:

C. $737,500

Explanation:

The formula to compute the ending balance of retained earning is shown below:

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

= $659,000 + $220,000 - $141,500

= $737,500

The net income is calculated below:

= Sales revenues - expenses

$600,000 - $380,000

= $220,000

3 0
3 years ago
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