Problem 13-21 (Algo) [LO 13-5] Comet operates solely within the United States. It owns two subsidiaries conducting business in the United States a everal foreign countries. Both subsidiaries are U.S. corporations. This year, the three corporations report the follow Foreign Source U.S. Source Foreign Income Tax Paid Income Income $ Comet 0 0 635,000 $ $ Sub 1 230,000 4,010,000 386,000 Sub 2 4,080,000 465,000 1,265,000 "equired: If Comet and its two subsidiaries file a consolidated U.S. tax return, compute consolidated income tax. What is the aggregate tax of the group if the three corporations file separate U.S. tax returns? > Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required Required A B What is the aggregate tax of the group if the three corporations file separate U.S. tax returns? Note: Do not round any intermediate calculations. Aggregate $ Cax 2,093,100 Show less▲

Problem 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

Translation and Remeasurement Gains and Losses Amcrest France Sarl, located in Paris France, is a financial subsidiary of Target Corporation, a U.S. company. Amcrest's accounts are re- ported in euros. Assume that the following data relate to Amcrest's activities for 2020 (in millions). €(15,000) 5,400 Net monetary liabilities, beginning of year. Net assets, beginning of year.. Transactions during 2020: Sales.... 72,000 59,000 ...... Inventory purchases.. Depreciation and amortization Cost of sales..... Cash operating expenses.. Dividends declared and paid New long-term interest borrowings 1,000 61,000 9,500 100 300 Sales, inventory purchases, and cash operating expenses were reported evenly throughout the year. Exchange rates are as follows ($/€): Beginning of 2020 Average for 2020 End of 2020 $1.30 1.24 1.20 ... .. Rate when assets related to depreciation and amortization were acquired Rate when dividends declared...... Rate when long-term interest borrowings occurred 1.45 1.21 1.25…

Certain balance sheet accounts of a foreign subsidiary of Orchid Company have been stated in U.S. dollars as follows:     Stated at   Current Rates   Historical Rates Accounts receivable, current $ 155,000     $ 175,000   Accounts receivable, long term   108,000       115,000   Land   54,000       59,000   Patents   83,000       88,000     $ 400,000     $ 437,000     This subsidiary’s functional currency is the U.S. dollar. What total should Orchid’s balance sheet include for the preceding items?