You are the tax accountant for ABC Inc., a US-based company that is considering investing in a
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You are the tax accountant for ABC Inc., a US-based company that is considering investing in a subsidiary in Japan. The subsidiary is expected to generate a net income of JPY 100 million in the first year and is subject to a Japanese corporate tax rate of 30%. ABC Inc. is subject to a US corporate tax rate of 21%. The current exchange rate is JPY 100 = USD 0.90. Calculate the after-tax return on investment (ROI) for ABC Inc. if it invests USD 2 million in the subsidiary.
Related Book For
Taxes And Business Strategy A Planning Approach
ISBN: 9780132752671
5th Edition
Authors: Myron Scholes, Mark Wolfson, Merle Erickson, Michelle Hanlon
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