Principles Of Taxation For Business And Investment Planning 2020 Edition
23rd Edition
ISBN: 9781259969546
Author: Sally Jones, Shelley C. Rhoades-Catanach, Sandra R Callaghan
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 13, Problem 27AP
a.
To determine
Calculate Incorporation D’s allowable dividends-received deduction with respect to each dividend.
b.
To determine
Calculate Incorporation D’s net dividend income.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Champ received a $13,200 distribution from NeatCo, a U.S. C corporation. NeatCo's earnings and profits for the year totaled $7,920.
How much dividend income does Champ recognize?
Zamboanga Corporation, a resident corporation, is a venturer in Southern Philippine Ventures (SPV), an incorporated joint venture formed under Philippine laws. Zamboanga owns 30% interest in SPV. During 2014, SPV reported P3,000,000 profit and declared P1,000,000 in dividends. How much final tax will be withheld from the dividend distribution to Zamboanga Corporation?
Hart Enterprises, a U.S. corporation, owns 100% of OK, Ltd., an Irish corporation. OK's gross income for the year is $10,000,000.
Determine OK's Subpart F income (before any expenses) from the transactions that it reported this year.
If an amount is zero, enter "0".
Transaction
Income Includedin Subpart F
a.
OK received $600,000 from sales of products purchased from Hart and sold to customers outside Ireland.
$
b.
OK received $1,000,000 from sales of products purchased from Hart and sold to customers in Ireland.
$
c.
OK received $400,000 from sales of products purchased from unrelated suppliers and sold to customers in Germany.
$
d.
OK purchased raw materials from Hart, used these materials to manufacture finished goods, and sold these goods to customers in Italy. OK earned $300,000 from these sales.
$
e.
OK received $100,000 for the performance of warranty services on behalf of Hart. These services were performed in Japan for customers located in Japan.
$…
Chapter 13 Solutions
Principles Of Taxation For Business And Investment Planning 2020 Edition
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
Knowledge Booster
Similar questions
- Pearl Inc. is a Canadian-controlled private corporation (CCPC) that owns 100% of the voting shares of Oyster Ltd. and 25% of the voting shares of Shell Corp. The fair market value of the Shell Corp. shares owned by Pearl Inc. is equal to 25% of the fair market value of all Shell Corp. shares. In the current year, Pearl Inc. received the following dividends: Eligible dividends from various portfolio investments $ 7,500 Non-eligible dividends from Oyster Ltd. $30,200 Non-eligible dividends from Shell Corp. $12,750 As a result of paying the $30,200 dividend, Oyster Ltd. received a dividend refund of $7,550. Shell Corp. received no dividend refund for its dividend payment. Which of the following is the correct amount of Part…arrow_forwardG Ltd., a Canadian private corporation, owns 30% of the voting shares of X Ltd., a Canadian private corporation. In the current year X paid a non-eligible dividend of $40,000 and received a dividend refund from its NERDTOH account of $10,000. In addition, G received eligible dividends of $15,000 from various Canadian public corporations. Determine G’s refundable Part IV tax.arrow_forwardThis year, GHJ, Incorporated received the following dividends:BP, Incorporated (a taxable California corporationin which GHJ holds a 4% stock interest) MN, Incorporated (a taxable Florida corporation in which GHJ holds a 53% stock interest)$ 20,90082,600AB, Incorporated (a taxable French corporation in which GHJ holds a 30% stock interest)20,900Required:Compute GHJ's dividends-received deduction.arrow_forward
- SCENARIO: AMO Limited purchases shares of BEMI Limited by investing 1,000,000.00 ZMW. The dividend received on these shares reflects in the profit and loss account of the company. Further, the workers of the company receive an annual bonus and the dividend amount is taken into account in calculating the overall bonus figure.A few years later, AMO Limited transfers the shares of BEMI Limited to CUMI Limited, which is a wholly owned subsidiary of AMOLimited. Post transferring of the shares, the dividends do not reflect in the accounts of AMO Limited. This leads to a reduction in the overall bonus amount figure. Is AMO Limited legally allowed to do so? Which legal theory needs to be mentioned here?arrow_forwardMr. Chua sold shares of stocks of a resident foreign corporation directly to a buyer. The shares were purchased for P100,000 and were sold at a net selling price of P210,000.Compute the capital gains tax.arrow_forwardMr. Omagana, a resident Japanese, owned 2,000 common shares of San Miguel Corporation with book value of P1,000,000. He sold half to Mr. Hapona, a direct buyer, for P1,000,000. The other half through the Philippine Stock Exchange for P950,000, inclusive of the broker’s fee of P50,000. How much is the final income tax?arrow_forward
- Valley View Inc., a U.S. corporation, formed a wholly owned Mexican corporation to conduct manufacturing and selling operations in Mexico. In its first year of operations, the Mexican corporation reported taxable income of Mex$5,000,000 and paid Mexican income tax of Mex$1,500,000 on its taxable income. In the second year of its operations, the Mexican subsidiary pays a dividend of Mex$2.000,000 to Valley View, Inc. The dividend is subject to a 10 percent withholding tax (Mex$200,000) under the U.S.-Mexico treaty. Assume the currency translation rate for both years is Mex$1:US$0.05.b-1. How much of the dividend from the Mexican subsidiary is subject to U.S. taxation?b-2. Are any of the Mexican taxes imposed on the income distributed creditable to the U.S.?arrow_forwardIrene received the following dividends in 2021: • an eligible dividend of $16,550 •a non-eligible dividend of $12,450 •a dividend of $21,975 from a foreign corporation, net of $3300 of foreign tax withheld •a stock dividend of 444 shares; the paid-up capital of the corporation was increased by $25 for each share issued, and the issuing company is a public company Irene has a combined federal and provincial tax rate of 45%. Required: Indicate total after-tax amount received by Irene in 2021. For each investment you should identify the total cash received, the taxable amount, the taxes, any related dividend tax credits (if applicable), and total cash (after- tax). Use a chart to help organize your calculations.arrow_forwardCoconut, an individual, is the sole shareholder of Tropical Fruit Corporation, a U.S. based corporation. Coconut also owns the office building that serves as corporate headquarters for Tropical Fruit Corporation. Last year, Tropical Fruit Corporation paid $400,000 annual rent to Coconut for use of the building. Tropical Fruit Corporation 's marginal tax rate was 21% and Coconut's marginal tax rate on ordinary income was 37%. Also, Coconut's qualified dividend rate was 20%. The revenue agent who audited Tropical Fruit Corporation's return concluded that the fair rental value of the office building was $300,000. What is the net increased amount of Coconut and Tropical Fruit Corporation's combined income tax liability as a result of this audit conclusion? $21,000 $17,000 $3,000 $4,000arrow_forward
- Valley View Incorporated, a U.S. corporation, formed a wholly owned Mexican corporation to conduct manufacturing and selling operations in Mexico. In its first year of operations, the Mexican corporation reported taxable income of Mex$5,000,000 and paid Mexican income tax of Mex$1,500,000 on its taxable income. In the second year of its operations, the Mexican subsidiary pays a dividend of Mex$2,000,000 to Valley View, Incorporated. The dividend is subject to a 10 percent withholding tax (Mex$200,000) under the U.S.-Mexico treaty. Assume the currency translation rate for both years is Mex$1:US$0.05. Required: a. Assuming that Valley View Incorporated's Mexican subsidiary does not have any subpart F income or global intangible low-tax income (GILTI), how much taxable income would Valley View, Incorporated, report in U.S. dollars from its Mexican subsidiary's first year of operations? b-1. How much of the dividend from the Mexican subsidiary is subject to U.S. taxation? b-2. Are any of…arrow_forwardA private individual buys shares in a Norwegian limited liability company on 1 January this year for NOK 1,000,000. annual share dividends of NOK 100,000 are received from the investment, first on 2 January year 2, and then on 2 January each year. The dividend that the ash company records as short-term debt in its accounts as of 31 December in year 4, and which is paid on 2 January in year 5, shall accrue to the new shareholder the shares rise in value each year and have an annual value increase (excluding dividends) of 5% on the basis of this information you should salvage the following a) what is the sale value of the shares as of 1 January this year 5 b) what is the investment's internal rate of return including increase in value and dividends received during the private person's ownership period c) What is the present value of the investment including increase in value and dividends received? Take the necessary assumptions about any variables that are missing to calculate the…arrow_forwardSam owns all of the shares of X Ltd. Sofia owns all of the shares of Y Ltd. The owners plan to combine their businesses by amalgamating the two corporations on September 1st of the current year. The shares of X have an ACB of $2,000 and are currently worth $100,000. The shares of Y have an ACB of $4,000 and are currently worth $130,000. X and Y are both Canadian corporations and have a December 31 taxation year-end. What is the ACB of the shares of the amalgamated corporation received by Sam? $arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
