None Ronan, Inc. is a U.S. corporation and Becker, Inc. is itsforeign subsidiary. In 2017, Ronan earned $400,000 ofU.S. source income. Becker earned $100,000 offoreign income, paid $20,000 of foreign tax, anddistributed $80,000 to Ronan. How much dividendincome will Ronan report related to the distributionfrom Becker?

Step 1: Identify Total Distribution:Becker distributed a total of $80,000 to Ronan.Step 2: Assess…

Answered: Ronan, Inc. is a U.S. corporation and…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter9: Taxation Of International Transactions

Section: Chapter Questions

Problem 52P

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From the given data below, how much is the final tax on the dividend earned by Cruz? ZAX Corporation, a domestic corporation, declared a P1,000,000 dividend for the current period 2021. The following are some stockholders of ZAX: Stockholder Description Ownership De Guzman Resident citizen 10% Cruz ABC Corporation DEF Corporation Non-resident alien engaged in business in the Philippines Domestic corporation Nonresident foreign corporation 15% 30% 10% a. P15,000 b. P30,000 с. Р37,500 d. No final tax
The answer is B. Please explain how to get this number. Austin Corporation, a U.S. corporation, received the following investment income during the current year: $50,000 of dividend income from the ownership of stock in a French corporation, $20,000 interest on a loan to its Dutch subsidiary, $40,000 royalty from its 50 percent owned Irish venture, and $30,000 capital gain from the sale of its stock in a Brazilian corporation. How much of Austin's income is treated as a foreign source? A) $140,000B) $110,000C) $70,000D) $60,000
From the given data below, how much is the final tax on the dividend earned by Cruz?
3. Hanson Mills,, a U.S.-based MNC has a foreign subsidiary that earns $1,050,000 before local taxes, with all the after tax funds to be available to the parent in the form of dividends. The foreign income tax rate is 30%, the foreign dividend withholding tax rate is 15% and the firm's U.S. tax rate is 35%. What are the funds available to the parent MNC if no tax credits are allowed? A) $624,752 B) $425,250 C) $406,088 D) $735,000
A U.S.-based MNC has three subsidiaries: S1 (40 percent owned by the MNC); S2 (33 percent owned by S1), and S3 (20 percent owned by S2). The taxable income for each firm is $100 million. The local taxes for each firm are $15 million, $20 million, and $10 million, respectively. The MNC's tax rate is 40 percent. A.) Can the MNC apply all of its local taxes as a credit against its U.S. taxes? If not, which subsidiaries can it use to get a credit against its U.S. taxes. Explain your rationale briefly. B.) Based on the "grossing up" concept, calculate all tax credits applicable to the MNC.
Which of the following is true concerning dividends? a. Foreign dividends are included in income at their pre-withholding-tax amounts for tax purposes. b. Dividends received from a CCPC's business income that is not subject to the small business deduction are typically grossed-up to include 115% of the dividend. c. Dividends received a CCPC's business income that is subject to the small business deduction are typically grossed-up to include 138% of the dividend. d. Eligible dividends require a 115% gross up.
A U.S.-based MNC has three subsidiaries: S1 (40 percent owned by the MNC); S2 (33 percent owned by S1), and S3 (20 percent owned by S2). The taxable income for each firm is $100 million. The local taxes for each firm are $15 million, $20 million, and $10 million, respectively. The MNC's tax rate is 40 percent. 19. Can the MNC apply all of its local taxes as a credit against its U.S. taxes? If not, which subsidiaries can it use to get a credit against its U.S. taxes. Explain your rationale briefly. 20. Based on the "grossing up" concept, calculate all tax credits applicable to the MNC.
Mr. Chua sold shares of stocks of a resident foreign corporation directly to a buyer. The shares were purchased for P100,000 and were sold at a net selling price of P210,000.Compute the capital gains tax.
Which of the following is (are) true about the dividend tax imputation system in New Zealand? Choose all correct answer(s). The dividend tax imputation system is very similar to that used in the U.Ss. O Dividends are essentially still taxed at the company's tax rate (28%). If we account for personal taxes, the tax advantage of debt relative to equity for New Zealand companies increases; this is why New Zealand companies prefer debt to equity as a source for long-term financing. If the dividend is fully imputed, the effective tax rate on dividend for individual shareholders in New Zealand are their personal marginal tax rates. If the shareholder received $1,000 imputation credit, but he needs to pay $5,000 tax on income other than dividend income, he/she only needs to pay $4,000 to the IRD.
Please help solve this question
For the following independent cases, determine whether economic income is present and, if so, whether it must be included in gross income (i.e., is it realized and recognized for tax purposes?). Note: Leave no answers blank. Enter zero if applicable. Required: Asia owns stock that is listed on the New York Stock Exchange, and this year the stock increased in value by $15,250. Ben sold stock for $10,500 and paid a sales commission of $210. Ben purchased the stock several years ago for $4,200. Bessie is a partner in SULU Enterprises LLC. This year SULU reported that Bessie's share of rental income was $2,850 and her share of municipal interest was $800.
Mr. Jin, a non-resident alien stockholder, received a dividend income from a resident foreign corporation amounting to P 600,000 in the year of 2018. The gross income of the foreign corporation from within and without the Philippines for three years preceding 2018 are as follows: sources of income 2015 2016 2017 Philippines 16,000,000 12,000,000 14,000,000 Outside the Philippines 20,000,000 14,000,000 16,000,000 How much of the dividend income received by Mr. Jin shall be reported as part of income within the Philippines?

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