Complicity Corporation is incorporated in the United States and has a 34% tax rate. Complicity owns 33%

Question:

Complicity Corporation is incorporated in the United States and has a 34% tax rate. Complicity owns 33% of Detache Corporation's stock. Detache is incorporated in Country Q. During the current year, Detache reports $310,000 of current E&P, pays $82,100 in Country Q income taxes, and remits $48,000 in dividends to Complicity. In addition, Country Q withholds $7,200 in taxes from the dividend payment. Detache's accumulated E&P at the beginning of the current year is $205,000. In prior years, Detache paid $53,200 of Country Q income taxes but remitted no dividends to Complicity in those years. Determine Complicity's net U.S. tax liability resulting from the dividend payment to Complicity?

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... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...