Problem 13-21 (Algo) [LO 13-5]Comet operates solely within the United States. It owns two subsidiaries conducting business in the United States aeveral foreign countries. Both subsidiaries are U.S. corporations. This year, the three corporations report the followForeignSourceU.S.SourceForeignIncome TaxPaidIncomeIncome$Comet00635,000$$Sub 1230,0004,010,000386,000Sub 2 4,080,000465,0001,265,000"equired:If Comet and its two subsidiaries file a consolidated U.S. tax return, compute consolidated income tax.What is the aggregate tax of the group if the three corporations file separate U.S. tax returns?> Answer is complete but not entirely correct.Complete this question by entering your answers in the tabs below.Required RequiredABWhat is the aggregate tax of the group if the three corporations file separate U.S. taxreturns?Note: Do not round any intermediate calculations.Aggregate$Cax2,093,100Show less▲

Here's a breakdown of how the tax is calculated for each corporation:Comet: $635,000 (U.S. source…

Answered: Problem 13-21 (Algo) [LO 13-5] Comet…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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
Problem 9-54 (LO 9-4) Jenna paid foreign income tax of $2,997 on foreign income of $14,986. Her worldwide taxable income was $120,800, and her U.S. tax liability was $30,000. Required: a. What is the amount of the foreign tax credit (FTC) allowed? b. What would be the allowed FTC if Jenna had paid foreign income tax of $5,900 instead? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount. a. Foreign tax credit allowed b. Foreign tax credit allowed Amounts
Which statement is FALSE? * Interest income earned by a depositary bank under the Expanded Foreign Currency Deposit System from residents is subject to 10% final income tax. A PEZA-registered enterprise is non-taxable on its related activities. The income of an Offshore Banking Unit from forex transactions in the country is subject to regular income tax. None of the above All of the above
F5 Corporation, a domestic corporation had the following data during the calendar year 2020 Gross Income, Philippines P10,000,000 4,000,000 Allowable itemized deductions/expenses Dividend income FROM: a) Domestic corporation 1,000,000 b) Foreign corporation, 80% of its gross income were derived from the Philippines 1,000,000 c) Foreign corporation, 60% of its gross income were derived from the Philippines 800,000 d) Foreign corporation, 25% of its gross income were derived from the Philippines 400,000 49. The taxable income is a. P9,200,000 c. P8,200,000 b. P7,500,000 d. P7,430,000
Dividends received from a domestic corporation 50,000 Dividends received from a resident foreign corporation 40,000 Dividends received from a non-resident foreign corp 30,000 • The domestic corporation is doing 40% of its business outside the Philippines. • The resident foreign corporation has been doing 60% of its business in the Philippines. • The taxpayer is a resident citizen How much dividend income is taxable? . How much is the final tax on his dividend income? Assuming taxpayer is domestic corporation, how much dividend income is taxable?
Oracle Corp, a U.S. corporation, earns $25 million of taxable income from U.S. sources and $10 million of taxable income from foreign sources. What amount of taxable income does Oracle report on its U.S. tax return? a. $25 million. b. $35 million. c. $25 million less any tax paid on the foreign income. d. $35 million less any tax paid on U.S. income.
13. A U.S. corporation established a 100% owned business in Germany. The U.S. corporation has U.S. source income in the current year of $300,000. The German business reports the following information for the current year: German-source net income 200,000 German income tax 80,000 Net income after taxes 120,000 Cash remitted to U.S. owner 30,000 German withholding tax 3,000 Cash received by U.S. owner 27,000 Assume the business is a foreign branch and that the income is subpart F income. What is the U.S. corporation’s taxable income? a. $300,000 b. $330,000 c. $350,000 d. $500,000
22. A domestic corporation has a net income of P1,200,000 in the Philippines and P800,000 from abroad. Compute the income tax due a. P 650,000 О Б.Р 500,000 O c. P 550,000 O d. P 600,000 23. Assuming the corporation in question number 22 is foreign corporation. What will be the income tax due * a. P 600,000 О Б. Р650,000 с. Р360,000 O d. P300,000
A resident foreign corporation has the following income and expenses for the year: Philippines Abroad Gross sales P100,000,000 P40,000,000 Cost of sales 40,000,000 20,000,000 Operating expenses 30,000,000 12,000,000 1. How much is the income tax due assuming the taxable year is 2021?2. Assuming the corporation is a nonresident foreign corporation and the taxable year is 2021, how much is the income tax due?
7. A foreign subsidiary of the Bart Corporation has certain balance sheet accounts on December 31, 20X2. Information relating to these accounts in U.S. dollars is as follows: Restated at Current Rates Historical Rates Marketable (Available-for-Sale and Trading) securities $ 75,000 $ 85,000 Inventories, carried at average cost Refundable deposits Goodwill 600,000 25,000 55,000 $ 755,000 700,000 30,000 70,000 $ 885,000 What total should be included in Bart's balance sheet on December 31, 20X2, as a result of the preceding information? Foreign Currency is Functional Currency $780,000 $870,000 $755,000 $880,000 U.S. Dollar is Functional Currency $870,000 $755,000 $780,000 $880,000 x
Problem 13-12 (Static) [LO 13-7] Zenon Incorporated has the following taxable income: U.S: source income Foreign source income Taxable income $1,900,000 240,000 $ 2,140,000 Required: Zenon paid $33,000 foreign income tax. Compute its U.S. income tax, if Zenon conducted its foreign operations through a foreign subsidiary that made no shareholder distributions during the current year and had no GILTI or subpart F Income. US income tax A

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