Zenon Incorporated has the following taxable income: $ 1,990,000 240,000 $ 2,140,000 U.S: source income Foreign source income Taxable income Required: Zenon paid $33,000 foreign income tax. Compute its U.S. Income tax, if Zenon conducted its foreign operations through a foreign subsidiary that made no shareholder distributions during the current year and had no GILTI or subpart F income. US income tax
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- What is the foreign tax credit X Corp, a US Corp, is able to take on its current year return based on the following facts: Taxable income: X Corp, 100% US income ---$10,000,000 X Corp's foreign branch, 100% non-US income ---$1,000,000 Foreign tax paid by the foreign branch--- $300,000Oracle Corp, a U.S. corporation, earns $25 million of taxable income from U.S. sources and $10 million of taxable income from foreign sources. What amount of taxable income does Oracle report on its U.S. tax return? a. $25 million. b. $35 million. c. $25 million less any tax paid on the foreign income. d. $35 million less any tax paid on U.S. income.The subsidiary of a U.S. corporation located in Country Y generated income of $1,000,000 on which it paid $200,000 in taxes to Country Y. The subsidiary paid a dividend to the U.S. parent of $150,000. How much tax is currently owed to the U.S. government if the federal tax rate is 35%? Multiple Choice $52,500 $0 $35,625 $32,500
- Axtell Corporation has the following taxable income: U.S. source income Foreign source income: Country A Country B Country C Taxable income $ 1,620,000 550,000 2,000,000 2,900,000 $ 7,070,000 Axtell paid $600,000 income tax to Country B and $1.3 million income tax to Country C. Country A does not have a corporate income tax. Required: Compute Axtell's U.S. income tax, assuming the foreign source income does not qualify as FDII. Note: Do not round any intermediate calculations. Enter your answer in dollars and not in millions of dollars. U.S. income taxZenon, Incorporated has the following taxable income: U.S. source income Foreign source income Taxable income $ 2,060,000 400,000 $ 2,460,000 Required: Zenon paid $49,000 foreign income tax. Compute its U.S. income tax, assuming the foreign source income does not qualify as FDII. Note: Do not round any intermediate division. X Answer is complete but not entirely correct. $ 432,600 X U.S. income taxDrake, Inc., a domestic corporation, has worldwide taxable income of $250,000, consisting of $200,000 U.S.-source income and $50,000 foreign-source dividend income from Jetco, a foreign corporation in which Drake owns 4% of the voting stock. The foreign tax paid on the dividend income is $20,000. a. What is the limit on the foreign tax credit? b. What is the US and total tax paid by Drake?
- Jackson Inc. has the following taxable income: U.S. source income Foreign source income Taxable income $19,000,000 2,890,000 $21,890,000 Jackson paid $1,060,000 foreign income tax. Compute its U.S. income tax, assuming the foreign source income does not qualify as FDII. (Do not round any intermediate division. Round the rest of the intermediate calculations and final answer to the nearest whole dollar amount.) U.S. income taxMany Mountains, Incorporated is a U.S. multinational corporation. This year, it had the following income. U.S. source income Foreign source income: Country X Country Y Total Multiple Choice O Many Mountains paid $15,000 income tax to Country X and $28,500 income tax to Country Y. Assume Many Mountains' foreign source income does not qualify as foreign- derived intangible income. Compute Many Mountains' allowable foreign tax credit. $15,000 $18.500 $33.500 $ 65,000 105,000 $35,700 $ 580,000 170,000 $750,000Problem 24-42 (LO 24-1) (Algo) Waco Leather Incorporated, a U.S. corporation, reported total taxable income of $4.8 million. Taxable income included $1.36 million of foreign source taxable income from the company's branch operations in Mexico. All of the branch income is foreign branch income. Waco paid Mexican income taxes of $244,800 on its branch income. Return to question Compute Waco's allowable foreign tax credit. Note: Enter your answer in dollars and not in millions of dollars. X Answer is complete but not entirely correct. Foreign tax credit $ 285,600
- 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 P2,250,000.00San Carlos Corporation, a U.S. multinational, had pretax U.S. source income and foreign source income as follows: U.S. source income $ 400,000 300,000 Foreign source income-Country W Total $ 700,000 San Carlos paid $60,000 income tax to Country W. Assume San Carlos' foreign source income does not qualify as foreign-derived intangible income. Calculate San Carlos' tax savings if it takes a foreign tax credit rather than deducting this tax.