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 income200,000German income tax80,000Net income after taxes120,000Cash remitted to U.S. owner30,000German withholding tax3,000Cash received by U.S. owner27,000 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. $300,000b. $330,000c. $350,000d. $500,000

The US corporation taxable income shall be US source income + Cash remitted to US owner = $300000 +…

Answered: source net income 200,000 German income…

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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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

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