Which of the following items of foreign source income is classified as passive category income for foreign tax credit purposes? Multiple Choice Dividend received from a 5 percent owned foreign corporation, all of the income of which is derived from an active business. Dividend received from a 20 percent owned foreign corporation, all of the income of which is derived from an active business. Dividend received from a 100 percent owned foreign corporation, all of the income of which is derived from an active business. None of the dividends in the scenarios listed here are classified as passive category income.

Which of the following items of foreign source income is classified as passive category income for foreign tax credit purposes? Multiple Choice Dividend received from a 5 percent owned foreign corporation, all of the income of which is derived from an active business. Dividend received from a 20 percent owned foreign corporation, all of the income of which is derived from an active business. Dividend received from a 100 percent owned foreign corporation, all of the income of which is derived from an active business. None of the dividends in the scenarios listed here are classified as passive category income.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter9: Taxation Of International Transactions

Section: Chapter Questions

Problem 52P

See similar textbooks

Similar questions

Which of the following is true concerning dividends? a. Foreign dividends are included in income at their pre-withholding-tax amounts for tax purposes. b. Dividends received from a CCPC's business income that is not subject to the small business deduction are typically grossed-up to include 115% of the dividend. c. Dividends received a CCPC's business income that is subject to the small business deduction are typically grossed-up to include 138% of the dividend. d. Eligible dividends require a 115% gross up.
Multiple choice: Topic: Income Taxation Which of the following gain is subject to capital gains tax? * Gain on sale of domestic bonds considered as capital asset. Gain on sale of real property considered as capital asset which is located in the Philippines. Gain on sale of foreign stocks not traded through the stock exchange All of the above Both a and b only
Which of the following gain is subject to capital gains tax? * a. Gain on sale of domestic bonds considered as capital asset. b. Gain on sale of real property considered as capital asset which is located in the Philippines. c. Gain on sale of foreign stocks not traded through the stock exchange O d. All of the above 9 O e. Both a and b only
Which one of the following is part of other comprehensive income (OCI)? Multiple Choice Sale of common stock above par. Unrealized gains resulting from remeasuring foreign currency financial statements of majority-owned subsidiaries to U.S. dollar amounts. Gains on sales of treasury stock. Receipt of land donated by a governmental unit.
U.S. International Corporation (USIC), a U.S. taxpayer, has investments in Foreign Entities A-G. Relevant Information for these entities for the current fiscal year appears in the following table: Entity Country % Owned Activity Income before tax ($ millions) Income Tax Rate Dividend Withholding tax Rate Net Amount Received by Parent ($ millions) USIC United States 35.00% Argentina Brazil Canada Hong Kong 100% Liechtenstein 100% A B C D E F G 100% 100% 100% 51% Japan New Zealand 60% Manufacturing $10.00 Manufacturing $1.00 Manufacturing $2.00 Manufacturing $3.00 Investment $2.00 Distribution $3.00 Manufacturing $2.00 $4.00 Banking 35.00% 34.00% 26.00% 16.50% 10.00% 38.00% 28.00% 0% 0% 5% 0% 4% 5% 5% $0.20 $2.50 $1.00 $1.50 S- $0.50 $1.00 Additional Information 1. USIC's $10 million income before tax is derived from the production and sale of products in the United States. 2. Each entity is legally incorporated in its host country other than Entity A, which is registered with the…
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--- $300,000
Identify whether the following items are subject to regular income tax, final tax, or exempt from income tax. Dividend income received from a domestic corporation by a nonresident foreign corporation Dividend income received from a resident foreign corporation by a domestic corporation Dividend income received from a resident foreign corporation by a resident foreign corporation Prizes from USA lotto Share in the net income of ordinary partnership Money received from reporting a company engaged in illegal activities Bag full of cash amounting to P500,000 found along the road Annual salary of a garbage collector not exceeding P200,000 Travel allowance liquidated and fully supported by receipts Performance bonus equivalent to 3x of the monthly salary P100,000 Royalties on songs written Sale of shares of stocks not listed in stock exchange Rent payments received by a resident alien for the lease of his residence abroad Cash prize of P1,000,000 for winning the…
A U.S. corporation owning 100 percent of a Dutch corporation will be eligible for a foreign tax credit for Dutch withholding taxes imposed on dividends received from the corporation even if the dividend is eligible for the 100 percent dividends received deduction. Group startsTrue or FalseTrue, unselectedFalse, unselected
8. Imposed on dividend, interest, and royalty payments to foreign investors. This is: a. Border tax b. Transfer tax c. Withholding tax d. Value-added tax.
With respect to General Rate Income Pool (GRIP) and Low Rate Income Pool (LRIP) balances, which of the following statements is NOT correct? OA. A Canadian Controlled Private Corporation's General Rate Income Pool account is increased by 72 percent of the company's Taxable Income. B. A Canadian Controllod Private Corporation's General Rate Income Pool account is increased by the amount of eligible dividends recelved during the current year oc. A Canadian Controlled Private Corporation's General Rate Income Pool account is reduced .by the amount of eligible dividends designated in the preceding taxation year OD. A public company's Low Rate Inicome Pool account is increased by the amount of non-oligible dividends roceived.
5. Assume Rosas Company is a resident foreign corporation using OSD, determine the amount of OSD to be used to arrive at Net Income before tax.
Many 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 $750,000