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
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
Chapter25: Taxation Of International Transact Ions
Section: Chapter Questions
Problem 32P
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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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