Akita is a U.S. corporation. This year, it earned $7.80 million before-tax income and paid $436,800 income tax to jurisdictions other than the United States: Required: a. Compute Akita's U.S. income tax assuming that the other jurisdictions were the states of Montana, Colorado, California, and Arizona. b. Compute Akita's U.S. income tax assuming that the other jurisdictions were Italy and Spain, and Akita's foreign tax credit was not limited. Complete this question by entering your answers in the tabs below. Required A Required B X Answer is complete but not entirely correct. Compute Akita's U.S. income tax assuming that the other jurisdictions were the states of Montana, Colorado, California, and Arizona. Note: Consider your intermediate values in dollars and not in millions. Enter your answer also in dollars and not in millions of dollars. U.S. income tax $ 1,201,200 X < Required A Required B Show less A

Akita is a U.S. corporation. This year, it earned $7.80 million before-tax income and paid $436,800 income tax to jurisdictions other than the United States: Required: a. Compute Akita's U.S. income tax assuming that the other jurisdictions were the states of Montana, Colorado, California, and Arizona. b. Compute Akita's U.S. income tax assuming that the other jurisdictions were Italy and Spain, and Akita's foreign tax credit was not limited. Complete this question by entering your answers in the tabs below. Required A Required B X Answer is complete but not entirely correct. Compute Akita's U.S. income tax assuming that the other jurisdictions were the states of Montana, Colorado, California, and Arizona. Note: Consider your intermediate values in dollars and not in millions. Enter your answer also in dollars and not in millions of dollars. U.S. income tax $ 1,201,200 X < Required A Required B Show less A

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Krebs, Inc., a U.S. corporation, operates an unincorporated branch manufacturing operation in the U.K. In the most recent year, Krebs, Inc., reported $1,00,000 of taxable income from the U.K. branch on its U.S. tax return, along with $1,600,000 of taxable income from its U.S. operations. Krebs paid $150,000 in U.K. income taxes related to the $1,000,000 in branch income. Assuming a U.S. tax rate of 21%, what is Krebs’ U.S. tax liability. Group of answer choices $0 $150,000 $396,000 $546,000
Hi, can you explain how does this aspect affects the U.S economy? Tax rates. The new law imposes a new tax rate structure with seven tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The top rate was reduced from 39.6% to 37% and applies to taxable income above $500,000 for single taxpayers, and $600,000 for married couples filing jointly. The rates applicable to net capital gains and qualified dividends were not changed. The “kiddie tax” rules were simplified. The net unearned income of a child subject to the rules will be taxed at the capital gain and ordinary income rates that apply to trusts and estates. Thus, the child’s tax is unaffected by the parent’s tax situation or the unearned income of any siblings.
Emma, a U.S. resident, received the following income items for the current tax year. Identify the sourcing of each item as either U.S. or foreign. $10,000 dividend from International Consolidated, Inc., a foreign corporation that reported gross income of $4,000,000 effectively connected with the con- duct of a U.S. trade or business for the immediately preceding three tax years. International’s total gross income for the same period was $12,000,000. $5,000 interest on Warren Corporation bonds. Warren is a U.S. corporation that derived $6,000,000 of its gross income for the immediately preceding three tax years from operation of an active foreign business. Warren’s total gross income for this same period was $7,200,000.
SkiCo, a Maine corporation, operates a branch in Peru selling equipment to persons planning to ski in the Andes mountain range. Peru levies an income tax on Peruvian companies equal to 25 percent of net income, with respect to foreign corporations such as SkiCo that operate in Peru, the government does not impose an income tax, but does impose a "foreign-company sales tax" equal to eight percent of the foreign corporation's Peruvian sales revenue. During the year, SkiCo's branch has sales of $200,000, expenses of $150,000 and pays a foreign-company sales tax of $16,000. If SkiCo were a Peruvian company, it would have paid Peruvian income tax of $12,500. (a) Is the foreign company sales tax creditable under §901 or §903? (b) Assume that SkiCo is required to pay both the $16,000 foreign-company sales tax and $12,500 Peruvian income tax on its branch operations. Is either type of Peruvian tax creditable under §901 or §903?
Waco Leather Incorporated, a U.S. corporation, reported total taxable income of $5 million. Taxable income included $1.5 million of foreign source taxable income from the company's branch operations in Mexico. All of the branch income is foreign branch income. Waco paid Mexican income taxes of $300,000 on its branch income. Compute Waco's allowable foreign tax credit. Note: Enter your answer in dollars and not in millions of dollars. Foreign tax credit
Lefty Inc. sells its products to customers residing in Country X and Country Y. Both foreign jurisdictions have a 20 percent corporate income tax. This year, Lefty made more than $30 million of sales in both Country X and Country Y. However, it paid income tax only to Country X. What factors could account for this result?
Richard has $30,000 of income from a country that imposes a 40-percent income tax and $30,000 of income from a country that imposes a 34 percent income tax. In addition to the foreign income, he has taxable income from US sources of $120,000 and a US tax liability, before credits, of $45,575. The amount of Richard’s foreign tax credit is:
A non-U.S. corporation investor held a real estate asset (a parcel of land) that that was purchased for $100,000,000 for 10 years and will sell it for $130,000,000. The investor gain on the sale of the asset is considered to in a business that is effectively connected to a U.S. trade or business (ECI). Compute the tax on the sale assuming that the investor held the asset directly (consider double tax - both ECI and branch profits tax) __________________ Compute the tax to the investor if held through US corporation (consider both entity level tax and FDAP tax on the distributions) with no treaty rates and a plan of liquidation in the year of sale _______________________
According to the course text, the United States has employed a worldwide system of taxation for the past 100 years. The Tax Cuts and Jobs Act (TCJA) upended this system. Imagine you are an international tax consultant advising a client on the impact of P.L. 115-97, the law known as the Tax Cuts and Jobs Act, on the taxation of a controlled foreign corporation (CFC). Analyze two changes to CFCs and advise your client on the actions necessary to reduce current and future tax liability as a result of these charges.
Complete this question by entering your answers in the tabs below. Analysis Analysis Bal Sheet Inc Stmt Prepare a vertical analysis of an income statements for Year 4 and Year 3. (Percentages may not add exactly due to rounding. Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).) Revenues Sales (net) Other revenues Total revenues Expenses Cost of goods sold FANNING COMPANY Vertical Analysis of Income Statements Year 4 Selling, general, and administrative expense Interest expense Income tax expense Total expenses Net income Amount $ 231,900 9,300 241,200 118,800 54,200 6,800 22,800 202,600 $ 38,600 Percentage of Total Analysis Bal Sheet % % Year 3 Amount $ 211,200 6,400 217,600 102,100 49,100 6,000 21,800 179,000 $ Percentage of Total % % 38,600 Analysis Inc Stmt > Show less
Weather, Inc., a domestic corporation, operates in both Fredonia and the United States. This year, the business generated taxable income of $975,000 from foreign sources and $1,462,500 from U.S. sources. All of Weather's foreign-source income is in the general limitation basket. Weather's total taxable income is $2,437,500. Weather pays Fredonia taxes of $365,625. Assume a 21% U.S. income tax rate. Do not round any division and if required, round your final answer to the nearest dollar. What is Weather's FTC for the tax year?
Castor & Pollux Limited is an Australian firm whose shares trade on the ASX. The firm earn part of its domestically income in Australia and and part of its income overseas, where it is required to pay tax to the foreign governments where it operates. Currently, the Australian corporate tax rate is 25% and the Medicare levy is 2%. Castor & Pollux provides dividend imputation to Australian-resident shareholders from its Australian tax paid. Assume that Castor & Pollux pays a 85 % partly-franked dividend of $14.32 thousand to an Australian shareholder who currently has a taxable income of $250 thousand before dividends and a marginal tax rate of 32.5% and is NOT exempted from paying Medicare levy. Compute the franking credits this investor would receive from the partly-franked dividend received. O a. $4057.33 O b. $2148.00 c. $3109.83 d. $84197.24 e. $83779.87 O f. $2282.85 g. $1915.30