Business, 10.03.2020 00:36, alleshia2007

Spartan Corporation, a U. S. corporation, reported $2 million of pretax income from its business operations in Spartania, which were conducted through a foreign branch. Spartania taxes branch income at 15 percent, and the United States taxes corporate income at 21 percent.
Required:
a. If the United States provided no mechanism for mitigating double taxation, what would be the total tax (U. S. and foreign) on the $2 million of branch profits?
b. Assume the United States allows U. S. corporations to exclude foreign source income from U. S. taxation. What would be the total tax on the $2 million of branch profits?
c. Assume the United States allows U. S. corporations to claim a deduction for foreign income taxes. What would be the total tax on the $2 million of branch profits?
d-1. Assume the United States allows U. S. corporations to claim a credit for foreign income taxes paid on foreign source income. What would be the total tax on the $2 million of branch profits?
d-2. Assume the United States allows U. S. corporations to claim a refundable credit for foreign income taxes paid on foreign source income. What would be your answer if Spartania taxed branch profits at 30 percent?

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 07:40, sistersquad

Myflvs -question 3 multiple choice worth 2 points)(10.04 hc)in panama city in january, high tide was at midnight. the water level at high tide was 9 feet and1 foot at low tide. assuming the next high tide is exactly 12 hours later and that the height of thewater can be modeled by a cosine curve, find an equation for water level in january for panamacity as a function of time (t).of(t) = 4 + 5of(t) = 5 cost + 4o 460) = 5 cos 1+ 4of(0) = 4 cos + 5

Answers: 1

continue

Business, 22.06.2019 10:50, milliebbbrown

Bill dukes has $100,000 invested in a 2-stock portfolio. $62,500 is invested in stock x and the remainder is invested in stock y. x's beta is 1.50 and y's beta is 0.70. what is the portfolio's beta? do not round your intermediate calculations. round the final answer to 2 decimal places.

Answers: 2

continue

Business, 22.06.2019 11:00, pum9roseslump

While on vacation in las vegas jennifer, who is from utah, wins a progressive jackpot playing cards worth $15,875 at the casino royale. what implication does she encounter when she goes to collect her prize?

Answers: 1

continue

Business, 22.06.2019 11:00, ashlynmartinezoz2eys

When the federal reserve buys bonds from or sells bonds to member banks, it is called monetary policy reserve ratio interest rate adjustment open market operations

Answers: 1

continue

Do you know the correct answer?

Spartan Corporation, a U. S. corporation, reported $2 million of pretax income from its business ope...