Required: 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?
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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▲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 foreign countries. Both subsidiaries are U.S. corporations. This year, the three corporations report the following: Foreign Source Income U.S. Source Income Foreign Income Tax Paid Comet Sub 1 0 $ 4,055,000 Sub 2 4,175,000 $ 740,000 192,000 463,500 0 $ 356,000 1,190,000 Required: 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 B If 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 taxWorldwide United Corporation, a U.S. taxpayer, manufactures and sells products through a network of foreign branches and foreign subsidiaries. Foreign subsidiaries are all controlled foreign corporations. Relevant information for these entities for the current fiscal year appears in the following table: Entity A B C D . ● ● Country . Bermuda |Hong Kong Ireland Malaysia Legal Form Corporation Corporation Corporation Branch Activity Sales Sales Investment Manufacturing Income Before Tax $8,000,000 $10,000,000 $2,000,000 $10,000,000 Income Tax Rate 0% 10% 12.5% 24% Dividend Withholding Tax Rate 0% 0% 0% 0% Net Dividend Received by Parent $8,000,000 Additional information: Entity A purchases finished goods from Entity D and sells them to other markets. 99% of A's income is from sales to foreign customers. Entity B purchases finished goods from Entity D and sells them to other markets. 60% of B's income is from sales to foreign customers. Entity C makes passive investments in stocks and…
- 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?If a branch of a foreign corporation (resident foreign corporation) derives net income of P20,000,000.00 to be remitted to the foreign head office, how much is the branch profits remittance tax? Group of answer choices P1,500,000.00 P2,000,000.00 P3,000,000.00 P2,250,000.00Problem 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.Comet operates solely within the United States. It owns two subsidiaries conducting business in the United States and several foreign countries. Both subsidiaries are U.S. corporations. This year, the three corporations report the following: Foreign Source Income U.S. Source Income Foreign Income Tax Paid $ 780,000 0 $ 388,000 1,270,000 Comet O Sub 1 Sub 2 $3,840,000 4,400,000 235,000 592,500 Required: 1. If Comet and its two subsidiaries file a consolidated U.S. tax return, compute consolidated income tax. 2. What is the aggregate tax of the group if the three corporations file separate U.S. tax returns?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
- ZAX, resident foreign corporation, reports the following: Philippines P15,000,000 P25,000,000 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 Total 3.000,000 25,000 2,000,000 | P17,450,000| P30.025.000 | 50,000 900,000 Compute the gross income of ZAX subject to regular income tax in the Philippines. a. P15,000,000 b. P15,900,000 c. P17,450,000 d. P47,475,000Question 1 ABC Corp. is a domestic corporation. It sold goods to XYZ Corp., a PEZA-registered export enterprise based in Cavite Economic Zone. ABC Corp. billed XYZ Corp. Php 1,000,000 upon delivery to XYZ Corp. XYZ Corp. paid Php 1,000,000. Subsequently, XYZ Corp. exported the goods to GHI Corp. based in the United States. The sale by ABC Corp. is: Group of answer choices a. Subject to 12% VAT b. Subject to 0% VAT c. VAT-exempt d. Subject to percentage taxQalvin Corporation, a MSME, reported the following in 2023: in 2022: Philippines Abroad Total Gross income P500,000 P200,000 P500,000 Direct Deductions 200,000 300,000 500,000 Common Expenses 150,000 Compute the income tax due if Qalvin is a Joint Venture formed for the undertaking of construction projects or exploration under service contracts with the government Qalvin Corporation, a MSME, reported the following gross income and expenses in 2022: Philippines Abroad Total Gross income P400,000 P300,000 P700,000 Deductions 200,000 150,000 350,000 Taxable income P200,000 P150,000 P350,000 Compute the income tax due if Qalvin is a Non-resident Foreign Corporation.