PRINCIPLES OF TAXATION F/BUS...(LL)
23rd Edition
ISBN: 9781260433197
Author: Jones
Publisher: MCG
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Question
Chapter 13, Problem 20AP
To determine
Calculate consolidated taxable income for the assumptions given.
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To qualify as a pass-through entity for U.S. corporate income tax, a REIT must be all of the following EXCEPT
a.structured as a corporation, trust, or association.
b.have transferable shares or certificates of interest.
c.managed by a board of directors or trustees.
d.jointly owned by less than 100 persons.
Comet operates solely within the United States. It owns two subsidiaries conducting business in the United States and several foreign
countries. Both subsidiaries are U.S. corporations. This year, the three corporations report the following:
Comet
Sub 1
Sub 2
Foreign
Source Income
0
$ 3,660,000
4,800,000
U.S. Source Foreign Income
Income
Tax Paid
0
$ 772,500
172,000
442,500
Required:
a. If Comet and its two subsidiaries file a consolidated U.S. tax return, compute consolidated income tax.
b. What is the aggregate tax of the group if the three corporations file separate U.S. tax returns?
Required A Required B
$ 380,000
1,250,000
Complete this question by entering your answers in the tabs below.
Consolidated income tax
If Comet and its two subsidiaries file a consolidated U.S. tax return, compute consolidated income tax.
Note: Do not round any intermediate division.
Dividend income received by a domestic corporation from a nonresident foreign
corporation may be exempt from income tax, provided:
The dividends actually received or remitted into the Philippines are reinvested in the
business operations of the domestic corporation within the next taxable year from
the time the foreign-source dividends were received or remitted;
The dividends received shall only be used to fund the working capital requirements,
capital expenditures, dividend payments, investment in domestic subsidiaries, and
infrastructure project; and
a.
b.
C.
d.
The domestic corporation holds directly at least twenty percent (20%) in value of the
outstanding shares of the foreign corporation and has held the shareholdings
uninterruptedly for a minimum of two (2) years at the time of the dividends
distribution. In case the foreign corporation has been in existence for less than two
(2) years at the time of dividends distribution, then the domestic corporation must
have continuously…
Chapter 13 Solutions
PRINCIPLES OF TAXATION F/BUS...(LL)
Ch. 13 - Why does a corporations state income tax cost...Ch. 13 - Prob. 2QPDCh. 13 - Prob. 3QPDCh. 13 - Prob. 4QPDCh. 13 - Borden Inc. conducts a business that spans four...Ch. 13 - Prob. 6QPDCh. 13 - Prob. 7QPDCh. 13 - Prob. 8QPDCh. 13 - Prob. 9QPDCh. 13 - Prob. 10QPD
Ch. 13 - Prob. 11QPDCh. 13 - Prob. 12QPDCh. 13 - Prob. 13QPDCh. 13 - Prob. 14QPDCh. 13 - Prob. 15QPDCh. 13 - Prob. 16QPDCh. 13 - This year, Mesa Inc.s before-tax income was...Ch. 13 - Prob. 2APCh. 13 - Prob. 3APCh. 13 - Prob. 4APCh. 13 - Prob. 5APCh. 13 - Prob. 6APCh. 13 - Prob. 7APCh. 13 - Prob. 8APCh. 13 - Prob. 9APCh. 13 - Prob. 10APCh. 13 - Prob. 11APCh. 13 - Prob. 12APCh. 13 - Prob. 13APCh. 13 - Prob. 14APCh. 13 - Prob. 15APCh. 13 - Prob. 16APCh. 13 - Prob. 17APCh. 13 - Prob. 18APCh. 13 - Prob. 19APCh. 13 - Prob. 20APCh. 13 - Prob. 21APCh. 13 - Prob. 22APCh. 13 - Prob. 23APCh. 13 - Prob. 24APCh. 13 - Prob. 25APCh. 13 - Prob. 26APCh. 13 - Prob. 27APCh. 13 - Prob. 28APCh. 13 - Prob. 29APCh. 13 - Prob. 30APCh. 13 - Prob. 31APCh. 13 - Prob. 32APCh. 13 - Prob. 33APCh. 13 - Prob. 34APCh. 13 - Prob. 35APCh. 13 - Prob. 36APCh. 13 - Prob. 37APCh. 13 - State E wants to encourage the development of a...Ch. 13 - Prob. 2IRPCh. 13 - Prob. 3IRPCh. 13 - Prob. 4IRPCh. 13 - Prob. 5IRPCh. 13 - Prob. 6IRPCh. 13 - Prob. 7IRPCh. 13 - Prob. 8IRPCh. 13 - Prob. 9IRPCh. 13 - Prob. 10IRPCh. 13 - Prob. 11IRPCh. 13 - Prob. 2RPCh. 13 - Prob. 3RPCh. 13 - Prob. 1TPCCh. 13 - Prob. 2TPCCh. 13 - Prob. 3TPCCh. 13 - Prob. 1CPCh. 13 - Prob. 2CP
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