Dunne, Inc., a U.S. corporation, earned $500,000 in total taxable income, including $50,000 in foreign-source taxable income from its branch manufacturing operations in Brazil and $20,000 in foreign-source income from interest earned on bonds issued by Dutch corporations. Dunne paid $25,000 in Brazilian income taxes and $3,000 in Dutch income taxes. Compute Dunne's U.S. tax liability after any available FTCs. Assume that the U.S. tax rate is 34%.
Answer to relevant QuestionsABC, Inc., a domestic corporation, has $50 million of taxable income, including $15 million of general limitation foreign-source taxable income, on which ABC paid $5 million in foreign income taxes. The U.S. tax rate is 35%. ...Collins, Inc., a domestic corporation, operates a manufacturing branch in Singapore. During the current year, the manufacturing branch produces a loss of $300,000. Collins also earns interest income from investments in ...Carter, Ltd., a foreign corporation, operates a sales branch in the United States that constitutes a U.S. trade or business. Rather than return the profits from the sales branch to the foreign home office, Carter invests the ..."U.S. persons are taxed on their worldwide income." Explain. Discuss situations in which the partnership entity form might be more advantageous (or disadvantageous) than operating as a Subchapter C or S corporation.
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