Night, Inc., a domestic corporation, earned $300,000 from foreign manufacturing activities, on which it paid $90,000 of foreign income taxes. Night's foreign sales income is taxed at a 50% foreign tax rate. What amount of foreign sales income can Night earn without generating any excess FTCs for the current year? Assume a 34% U.S. tax rate.
Answer to relevant QuestionsEvaluate the following statement: Foreign persons never are subject to U.S. taxation on U.S.-source investment income so long as they are not engaged in a U.S. trade or business. It is unfair that the United States taxes its citizens and residents on their worldwide income. PinkCo, Inc., operates in two states. It reports the following results for the year. Compute the apportionment percentage for both states. Amounts are stated in millions of dollars. Determine the source (U.S. or foreign) of the following items of income. a. Interest income paid by a foreign corporation. b. Dividend income paid by a U.S. corporation that has no foreign operations. c. Dividend income paid ...In March 2014, Grackle, Inc., acquired used equipment for its business at a cost of $300,000. The equipment is five-year class property for regular income tax purposes and for AMT purposes. Grackle does not claim any ...
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