Posse Corporation plans to form a foreign subsidiary through which to conduct a new business in Country

Question:

Posse plans to form a foreign subsidiary through which to conduct a new business in Country J. Posse projects that this business will operate at a loss for several years.
a. To what extent will the subsidiary’s losses generate U.S. tax savings?
b. To what extent will the subsidiary’s losses generate a savings of Country J income tax?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...