Continue with part (B) above. Assume US tax law allowed USA Logistics to elect not to deduct the $350 million of royalties paid to EuroConnect (i.e., USA Logistics could elect to ignore all of this amount when calculating taxable income and BEAT). How would this election affect USA Logistic's BEAT and total US tax? Would you recommend USA Logistics make this election in the current year?

Answer rating: 100% (QA)

Should USA Logistics opt out of deducting the 350 million in royalty payments to EuroConnect their taxable income for US tax purposes would increase T... View the full answer