Grammens Company, a domestic company, manufactures tools and machinery at its plants in Texas and Ohio. Its income from U.S. sales in 2019 was $16,000,000 and it earned income of $5,000,000 on its sales to Mexican and Canadian customers. Those goods were sold for use outside the U.S. Grammens U.S. tax rate is 21%. The adjusted tax basis of it manufacturing assets is $10,000,000. What is Grammens 2019 U.S. tax liability? Grammens paid no foreign taxes.
Grammens Company, a domestic company, manufactures tools and machinery at its plants in Texas and Ohio. Its income from U.S. sales in 2019 was $16,000,000 and it earned income of $5,000,000 on its sales to Mexican and Canadian customers. Those goods were sold for use outside the U.S. Grammens U.S. tax rate is 21%. The adjusted tax basis of it manufacturing assets is $10,000,000. What is Grammens 2019 U.S. tax liability? Grammens paid no foreign taxes.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter16: Multijurisdictional Taxation
Section: Chapter Questions
Problem 15P
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Transcribed Image Text:Grammens Company, a domestic company, manufactures tools and machinery at its plants in Texas and
Ohio. Its income from U.S. sales in 2019 was $16,000,000 and it earned income of $5,000,000 on its
sales to Mexican and Canadian customers. Those goods were sold for use outside the U.S. Grammens
U.S. tax rate is 21%. The adjusted tax basis of it manufacturing assets is $10,000,000. What is
Grammens 2019 U.S. tax liability? Grammens paid no foreign taxes.
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