Problem 13-21 (Algo) [LO 13-5]Comet operates solely within the United States. It owns two subsidiaries conducting business in the United States and several foreigncountries. Both subsidiaries are U.S. corporations. This year, the three corporations report the following:ForeignSource IncomeU.S. SourceIncomeForeign IncomeTax PaidCometSub 10$ 4,055,000Sub 24,175,000$ 740,000192,000463,5000$ 356,0001,190,000Required:a. If Comet and its two subsidiaries file a consolidated U.S. tax return, compute consolidated income tax.b. What is the aggregate tax of the group if the three corporations file separate U.S. tax returns?Complete this question by entering your answers in the tabs below.Required A Required BIf Comet and its two subsidiaries file a consolidated U.S. tax return, compute consolidated income tax.Note: Do not round any intermediate calculations.Consolidated income tax

The objective of the question is to calculate the consolidated income tax for Comet and its two…

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

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter25: Taxation Of International Transact Ions

Section: Chapter Questions

Problem 23P

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Problem 13-21 (Algo) [LO 13-5] Comet operates solely within the United States. It owns two subsidiaries conducting business in the United States a everal foreign countries. Both subsidiaries are U.S. corporations. This year, the three corporations report the follow Foreign Source U.S. Source Foreign Income Tax Paid Income Income $ Comet 0 0 635,000 $ $ Sub 1 230,000 4,010,000 386,000 Sub 2 4,080,000 465,000 1,265,000 "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 Required A B What is the aggregate tax of the group if the three corporations file separate U.S. tax returns? Note: Do not round any intermediate calculations. Aggregate $ Cax 2,093,100 Show less▲
Nexus Tech Industries' Consolidate Earnings. Nexus Tech is a U.S.-based multinational manufacturing firm with wholly-owned subsidiaries in Brazil, Germany, and China, in addition to domestic operations in the United States. NexusTech is traded on the NASDAQ. NexusTech currently has 650,000 shares outstanding. The basic operating characteristics of the various business units is as follows: Nexus Tech must pay corporate income tax in each country in which it currently has operations. a. After deducting taxes in each country, what are Nexus Tech's consolidated earnings and consolidated earnings per share in U.S. dollars? b. What proportion of Nexus Tech's consolidated earnings arise from each individual country? c. What proportion of Nexus Tech's consolidated earnings arise from outside the United States?
Problem 24-42 (LO 24-1) (Algo) Waco Leather Incorporated, a U.S. corporation, reported total taxable income of $4.8 million. Taxable income included $1.36 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 $244,800 on its branch income. Return to question Compute Waco's allowable foreign tax credit. Note: Enter your answer in dollars and not in millions of dollars. X Answer is complete but not entirely correct. Foreign tax credit $ 285,600
ZAX, resident foreign corporation, reports the following: Philippines P15,000,000 1,500,000 Abroad Gross income from business Dividends from ABC domestic corporation Dividends form DEF foreign corporation Interest on long-term deposits Rentals on properties P25,000,000 3,000,000 50,000 900,000 25,000 2,000,000 Total P17,450,000 P30,025,000 Compute the gross income of ZAX subject to regular income tax in the Philippines.
Problem 20. A Domestic Corporation subject to 25% RCIT had the following data on its Philippine and foreign operations in 2021: Taxable Income in the Philippines P1,800,000 1,500,000 Taxable Income from Taiwan Taxable Income from Japan 1,200,000 Net Loss from South Korea (500,000) 300,000 200,000 Quarterly Income tax paid in the Philippines Income tax paid in Taiwan Income tax paid in Japan Income tax paid in South Korea 400,000 What is the income tax still due after foreign tax credits?
ForCo, a foreign corporation, receives interest income of $100,000 from USCO, an unrelated U.S. corporation. USCO historically has earned 85% of its income from foreign sources. What amount of ForCo's interest income is U.S. source? a . So b. $50,00 c. $85,000 d. $100,000
1
Santas Corporation is a diversified firm with operations in the United States, Canada, Chile, Spain, and France, each of which qualifies as a geographic segment. Data with respect to those segments follows: Segments: US Canada Chile Spain France Corporate-level Total Revenues (in thousands) Unaffiliated Intersegment Customers $ 1,600 900 1,200 560 600 $4,860 1.400 $6.260 Sales $0 300 120 200 $620 $620 Total $ 1,600 1,200 1,320 560 800 Profit (Loss) $400 300 480 (60) (220) $5,480 $900 1,400 200 $6.880 $ 1.100 Assets $ 600 400 700 360 180 $2,240 2,000 $4,240 Required: Determine which of the Santas segments would be reportable segments using the three criteria as stipulated under U.S. GAAP. Show your calculations. Note: Students must show all calculations under the three criteria to receive maximum points available. Space is provided below.
Phils. Corporation reported the following gross income and expenses Philippines Overseas Gross income 38,000,000 14,000,000 52,000,000 deductions 15,000,000 3,000,000 18,000,000 taxable income 23,000,000 11,000,000 34,000,000 Compute the income tax due for 2019 if Phils is a domestic corporation: P10,200,000 P6,900,000 P8,500,000 P6,800,000
1. BATO Corp has the following data for the year ended December 31, 2021: PH USA Gross Income: P6,000,000.00 $50,000.00 Deductions: P4,000,000.00 $20,000.00 Dollar Rate P45:$1 Determine income tax due assuming the company is a domestic corporation with company assets amounting to more than P100M. Group of answer choices P837,500.00 P800,000.00 P492,500.00 P3,350,000.00 2. LENI Lugawan Corp has the following data for the year ended December 31, 2021: PH USA Gross Income: P6,000,000.00 $50,000.00 Deductions: P4,000,000.00 $20,000.00 Dollar Rate P45:$1 Determine income tax due assuming the company is a resident corporation. Group of answer choices P600,000.00 P1,500,000.00 P500,000.00 3. YORMS Corp has the following data for the year ended December 31, 2021:…
1. ForCo, a corporation that is incorporated in a foreign country that does not have a treaty with the United States, plans to conduct manufacturing, marketing, and sales operations in the United States. These U.S. operations produce $5 million of earnings & profits in Year 1. Assume further that the U.S. operations will have a net worth of $17 million at the beginning of Year 1 and $20 million at the end of Year 1. During Year 2, the U.S. branch does not produce any earnings & profits and its net worth is $20 million at the beginning of the year and $10 million at the end of the year. For branch profits tax purposes in Year 1, the dividend equivalent amount (“DEA”) for the U.S. branch is as follows: a. $1.5 million. b. $2.0 million c. $10 million. $20 million. d. $25 million. 2. For branch profits tax purposes in Year 2, the DEA for the U.S. branch is as follows: a. $2 million. b. $3 million. c. $10 million. d. $20 million. e. $25 million.…

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