EBK PEARSON ETEXT PRINCIPLES OF MANAGER
15th Edition
ISBN: 9780136846901
Author: SMART
Publisher: VST
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Question
Chapter 19, Problem 19.1WUE
Summary Introduction
To determine: The net funds available to the parent corporation (a) if foreign taxes can be applied against the U.S. tax liability and (b) if they cannot.
Expert Solution & Answer
Answer to Problem 19.1WUE
The net funds available to the parent corporation (a) if foreign taxes can be applied against the U.S. tax liability is $31,350 and (b) if they cannot net funds available is $20,691.
Explanation of Solution
Given information:
Subsidiary pretax income: $55,000
Local tax: 40.00%
Dividend withholding tax: 5.00%
US tax rate: 34.00%
Calculation of the SA receipts of dividend:
Excel working:
Therefore, the SA receipt of debt is $31,250.
(a) if foreign taxes can be applied against the U.S. tax liability
Calculation of the net fund available to SA:
Excel working:
Therefore, net fund available to SA is $31,500.
(b) if they cannot.
Foreign taxes cannot be applied against the U.S. tax liability
Excel working:
Therefore, Net fund available to SA is $20,691.00
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Students have asked these similar questions
If a branch of a foreign corporation (resident foreign corporation) derives net income of P20,000,000.00 to be remitted to the foreign head office, how much is the branch profits remittance tax?
Group of answer choices
P1,500,000.00
P2,000,000.00
P3,000,000.00
P2,250,000.00
The Tacurong Company has the following business income and expenses in year 2020:
Gross Income
From Philippine sources:
From business
450,000
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80,000
From other countries:
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180,000
Australia
75,000
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a. Compute for the income tax still due and payable if Tacurong is a domestic corporation.
b. Compute for the tax still due and payable if Tacurong is a resident foreign corporation.
1. BBM Diploma Distributors Corp has the following data for the year ended December 31, 2021:
PH USA
Gross Income: P6,000,000.00 $50,000.00
Deductions: P4,000,000.00 $20,000.00
Dollar Rate P45:$1
Determine income tax due assuming the company is a non-stock, non-profit educational institution which uses all its revenues or income for educational and charitable purposes.
Group of answer choices
P1,500,000.00
Exempt
Exempt insofar as "As such" is concerned
P837,500.00
2.
What is the jurisdiction of the Commissioner of Internal Revenue as regards the interpretation of Tax Laws?
Group of answer choices
Concurrent Original
Concurrent Appellate
Exclusive Appellate
Exclusive Original
3.
It includes any gain from the sale or exchange of property which is not a capital assets.
Group of answer choices
Ordinary Income
Gross Income
Gain on Sale of Assets
Net Income
Chapter 19 Solutions
EBK PEARSON ETEXT PRINCIPLES OF MANAGER
Ch. 19.1 - Prob. 19.1RQCh. 19.1 - Prob. 19.2RQCh. 19.1 - Prob. 19.3RQCh. 19.1 - Prob. 19.4RQCh. 19.2 - Under FASB No. 52, what are the translation rules...Ch. 19.3 - Prob. 19.6RQCh. 19.3 - Explain how differing inflation rates between two...Ch. 19.3 - Discuss macro and micro political risk. What is...Ch. 19.4 - Prob. 19.9RQCh. 19.4 - Prob. 19.10RQ
Ch. 19.4 - Prob. 19.11RQCh. 19.4 - Prob. 19.12RQCh. 19.5 - Prob. 19.13RQCh. 19.5 - Prob. 19.14RQCh. 19.5 - Prob. 19.15RQCh. 19.6 - Prob. 19.16RQCh. 19 - Prob. 19.1WUECh. 19 - Prob. 19.2WUECh. 19 - Prob. 19.3WUECh. 19 - Prob. 19.4WUECh. 19 - Prob. 19.5WUECh. 19 - Prob. 19.1PCh. 19 - Prob. 19.2PCh. 19 - Prob. 19.3PCh. 19 - ETHICS PROBLEM Is there a conflict between...
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