USACo is a domestic manufacturing corporation that exports a portion of its products; USACo is an S-Corporation
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Question:
USACo is a domestic manufacturing corporation that exports a portion of its products; USACo is an S-Corporation wholly owned by John Client (John pays the tax on the income of USACo.) John Client has created an IC-DISC, of which he is also the sole owner. Assume the regular income tax rate is 40%, the dividends tax rate is 20%, the current market rate for 52-week T-bills is 1%.
USACo has $2,500,000 of qualified export sales in 2015. Total direct and indirect costs related to exports are $2,200,000.
Compute the 2015 IC-DISC commission using the 4% of qualified export receipts method.
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