The small business deduction is only available on:Multiple ChoiceThe first $500,000 in manufacturing and processing income earned by a Canadian controlled private corporation.None of the above.All of the income earned in Canada by a Canadian controlled private corporation.Income earned in Canada by a resident corporation.

The small business deduction is a specific tax relief in Canada aimed at helping smaller businesses…

Answered: The small business deduction is only…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter15: Choice Of Business Entity—other Considerations

Section: Chapter Questions

Problem 82P

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Many Mountains, Incorporated is a U.S. multinational corporation. This year, it had the following income. U.S. source income Foreign source income: Country X Country Y Total Multiple Choice O Many Mountains paid $15,000 income tax to Country X and $28,500 income tax to Country Y. Assume Many Mountains' foreign source income does not qualify as foreign- derived intangible income. Compute Many Mountains' allowable foreign tax credit. $15,000 $18.500 $33.500 $ 65,000 105,000 $35,700 $ 580,000 170,000 $750,000
U.S. International Corporation (USIC), a U.S. taxpayer, has investments in Foreign Entities A-G. Relevant Information for these entities for the current fiscal year appears in the following table: Entity Country % Owned Activity Income before tax ($ millions) Income Tax Rate Dividend Withholding tax Rate Net Amount Received by Parent ($ millions) USIC United States 35.00% Argentina Brazil Canada Hong Kong 100% Liechtenstein 100% A B C D E F G 100% 100% 100% 51% Japan New Zealand 60% Manufacturing $10.00 Manufacturing $1.00 Manufacturing $2.00 Manufacturing $3.00 Investment $2.00 Distribution $3.00 Manufacturing $2.00 $4.00 Banking 35.00% 34.00% 26.00% 16.50% 10.00% 38.00% 28.00% 0% 0% 5% 0% 4% 5% 5% $0.20 $2.50 $1.00 $1.50 S- $0.50 $1.00 Additional Information 1. USIC's $10 million income before tax is derived from the production and sale of products in the United States. 2. Each entity is legally incorporated in its host country other than Entity A, which is registered with the…
Question 5) Canada, US, and China. Taxable income Net Canadian active business income manages by Canadian citizens who are in Ontario. They have activities in Net taxable capital gain royalty income interest expense Foreign Dividend salary expense Foreign tax paid for business Foreign tax paid for None business 250,000 $ 50,000 $ 15,000 $ 5,000 $ 2,000 $ 5,000 $ 75,000 $ 8,000 $ 12,000 $ How much they have to pay for Federal tax? Canada salary 45,000 $ China 5,000 $ US 25,000 $ revenue 150,000 $ 40,000 $ 60,000 $
Only number 5 and 6. Please show the solution.
Determine the taxable income for the year. (PHILIPPINES)
State whether or not the following items form part of the assessable income of an Australian resident taxpayer under any provisions other than the capital gains tax provisions. Provide reasons for your answer including references to legislation, case law and any relevant ATO Guidance. a. A table purchased at a garage sale for $5,000 and sold for $25,000. b. Five-million shares in a company allotted at a price of $1 each to an emnployee of the company. At the time of issue, shares of the company were being traded on the ASX at $85.00, but at the end of the year of income their price had dropped to $45.00. C. The profit on sale of investments by a life assurance company. d. A prize in a literary competition won by a journalist. A gift bequeathed to a taxpayer in consideration of his acting as a solicitor and е. executor of the will of the deceased husband of his friend, Lucy.
Compute the tax due if the corporation is a resident foreign corporation not availing OSD.
If the value of its total assets do no exceed P100,000,000, compute for the income tax payable if the taxpayer is a nonresident foreign corporation.
Katya Corporation had the following data in 2022: Gross Income, Philippines P 600,000 500,000 300,000 Gross Income, USA Expenses, Philippines Expenses, USA Interest from time deposit 300,000 10,000 21,000 interest on money market placement, net of tax Compute the income tax due and the final taxes payable if Katya is a: 1. Domestic Corporation 2. Resident Foreign Corporation 3. Nonresident Foreign Corporation
ABC corporation provided the following data for calendar year ending December 31, 2021 ($1 = P50). Use new tax rate under CREATE Law (RA 11534) d. If it opts to claim the tax paid abroad as deduction from gross income, Compute for its income tax. e. If it is private educational institution, Compute for its income tax due after tax credit. f. If it is a non-profit hospital, Compute for its income tax credit.
If the value of its total assets do no exceed P100,000,000, compute for the income tax payable if the taxpayer is a resident foreign corporation.
Dakota, a self-employeed resident citizen provided the following data for 2018 taxable year sales php 2,800,000 cost of sale 1,125,000 business expenses 650,000 interest income from peso bank deposit 80,000 interest income from deposit under FCDS 120,000 gain on sale of land in the philippines held as a capital asset with cost php 1,500,000 when zonal is php 1,200,000 500,000 How much is the total income tax of Dakota assuming she opted to be taxed at 8%? P321,500 P342,500 P351,500 P358,000

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