Horton Corporation is a 100 percent owned Canadian subsidiary of Cruller Corporation, a U.S. corporation. During...
Horton Corporation is a 100 percent owned Canadian subsidiary of Cruller Corporation, a U.S. corporation. During the current year, Horton paid a dividend of C$603,750 to Cruller. The dividend was subject to a withholding tax of C$31,000. Assume an exchange rate of C$1 = $1. Cruller reported U.S. source taxable income of $2,050,000 before considering the dividend received from Horton Corporation. Compute the tax consequences to Cruller as a result of this dividend.
Homework Answers
As per the US Law,
The dividends-received deduction (DRD), under U.S. federal income tax law, is a tax deduction received by a corporation on the dividends it receives from other corporations in which it has an ownership stake.
Dividends received from an 80%-owned corporate subsidiary are exempt if certain conditions are met. Finally, if the company receiving the dividend owns more than 80% of the company paying the dividend, the DRD equates to 100% of the dividend.
In the given case, Horton Corporation owns 100% stake of Cruller Corporation which is more than 80%. As a result, the Dividend received of CS$ 603,750 is not taxable. Only the source Taxable Income of CS$2,050,000 is taxable.
Add Answer to:
Horton Corporation is a 100 percent owned Canadian subsidiary of
Cruller Corporation, a U.S. corporation. During...
Tax consequences in the US
Horton Corporation is a 100 percent owned Canadian subsidiary of Cruller Corporation, a U.S. corporation. During the current year, Horton paid a dividend of C$603,750 to Cruller. The dividend was subject to a withholding tax of C$31,000. Assume an exchange rate of C$1 = $1. Cruller reported U.S. source taxable income of $2,050,000 before considering the dividend received from Horton Corporation. Compute the tax consequences to Cruller as a result of this dividend.a)Taxable income of 2,707,500, net U.S. tax of...
Emerald Corporation is a 100 percent owned Irish subsidiary of Shamrock, Inc., a U.S. corporation. Emerald...
Emerald Corporation is a 100 percent owned Irish subsidiary of Shamrock, Inc., a U.S. corporation. Emerald had earnings and profits of $3,937,500 and paid foreign taxes of $525,000 in the current year. During the current year, Emerald paid a dividend of $787,500 to Shamrock. The dividend was characterized as general category income for FTC purposes. The dividend was subject to a withholding tax of $39,375. Shamrock reported U.S. taxable income of $1,000,000 not including the dividend. Shamrock's U.S. tax rate...
Spartan Corporation manufactures quidgets at its plant in Sparta, Michigan. Spartan sells its quidgets to customers...
Spartan Corporation manufactures quidgets at its plant in Sparta, Michigan. Spartan sells its quidgets to customers in the United States, Canada, England, and Australia Spartan markets its products in Canada and England through branches in Toronto and London, respectively. Spartan reported total gross income on U.S. sales of $8,000,000 and total gross income on Canadian and U.K. sales of $4,000,000, split equally between the two countries. Spartan paid Canadian income taxes of $480,000 on its branch profits in Canada and...
ܝܢ Spartan Corporation manufactures quidgets at its plant in Sparta, Michigan. Spartan sells its quidgets to...
ܝܢ Spartan Corporation manufactures quidgets at its plant in Sparta, Michigan. Spartan sells its quidgets to customers in the United States, Canada, England, and Australia. 10 points Spartan markets its products in Canada and England through branches in Toronto and London, respectively. Spartan reported total gross income on U.S. sales of $15,000,000 and total gross income on Canadian and U.K. sales of $5,000,000, split equally between the two countries. Spartan paid Canadian income taxes of $600,000 on its branch profits...
i need your help to the below picture kindly i need more explnation thanks ahmad darwish P 10-12 Tax] Taxable incomes for Pop Corporation and Son Corporation,its 70 percent-owned subsidiary, for...
i need your help to the below picture kindly i need more
explnation
thanks
ahmad darwish
P 10-12 Tax] Taxable incomes for Pop Corporation and Son Corporation,its 70 percent-owned subsidiary, for 2016 Son Sales Dividends received from Son $1,000$600 56 1056600 500240 160 656400 Total revenue Cost of sales Operating expenses 156 Total deductions Taxable income S 400 ADDITIONAL INFORMATION 1. Pop acquined its interest in Son at a fair value equal to book value on December 31. 2o1s. 2....
Chapeau Company, a U.S. corporation, operates through a branch in Champagnia. The source rules us...
Chapeau Company, a U.S. corporation, operates through a branch in Champagnia. The source rules used by Champagnia are identical to those used by the United States. For 2018, Chapeau has $8,800 of gross income: $5,280 from U.S. sources and $3,520 from sources within Champagnia. The $5,280 of U.S. source income and $3,080 of the foreign source income are attributable to manufacturing activities in Champagnia (foreign branch income). The remaining $440 of foreign source income is passive category interest income. Chapeau...
Marathon Inc. (a C corporation) reported $1,000,000 of taxable income in the current year. During the...
Marathon Inc. (a C corporation) reported $1,000,000 of taxable income in the current year. During the year, it distributed $100,000 as dividends to its shareholders as follows: (New Corporate income tax rate has been mentioned as "21% on all taxable income" as per the recent change. Leave no answer blank. Enter zero if applicable.) $5,000 to Guy, a 5 percent individual shareholder. $15,000 to Little Rock Corp., a 15 percent shareholder (C corporation). $80,000 to other shareholders. How much of...
Chapeau Company, a U.S. corporation, operates through a branch in Champagnia. The source rules used by...
Chapeau Company, a U.S. corporation, operates through a branch in Champagnia. The source rules used by Champagnia are identical to those used by the United States. For 2019, Chapeau has $10,800 of gross income: $6,480 from U.S. sources and $4,320 from sources within Champagnia. The $6,480 of U.S. source income and $3,780 of the foreign source income are attributable to manufacturing activities in Champagnia (foreign branch income). The remaining $540 of foreign source income is passive category interest income. Chapeau...
U.S. C corporation exports products to Turks and Caicos. To make the product, U.S. C corporation...
U.S. C corporation exports products to Turks and Caicos. To make the product, U.S. C corporation has depreciable assets having a quarterly adjusted basis of $10 million and earns $5 million of tested income. What is U.S. Parent's foreign derived intangible income? Question 1 options: 1) $4 million. 2) $3 million. 3) $2 million. 4) $1 million. Don Dealer ("Dealer") is a citizen of the United Kingdom. He decides to come to the United States to open a car dealership...
Required information Postage Corporation receives management consulting services from its 92 percent-owned subsidiary. Stamp Inc. During...
Required information Postage Corporation receives management consulting services from its 92 percent-owned subsidiary. Stamp Inc. During 20X7. Postage paid Stamp $125,432 for its services. For the year 20X8, Stamp billed Postage $140,000 for such services and collected all but $7900 by year-end. Stamp's labor cost and other associated costs for the employees providing services to Postage totaled $86,000 in 20X7 and $121,000 in 20X8. Postage reported $2,567,000 of income from its own separate operations for 20X8, and Stamp reported net...
Spartan Corporation manufactures quidgets at its plant in Sparta, Michigan. Spartan sells its quidgets to customers in the United States, Canada, England, and Australia Spartan markets its products in Canada and England through branches in Toronto and London, respectively. Spartan reported total gross income on U.S. sales of $8,000,000 and total gross income on Canadian and U.K. sales of $4,000,000, split equally between the two countries. Spartan paid Canadian income taxes of $480,000 on its branch profits in Canada and...
ܝܢ Spartan Corporation manufactures quidgets at its plant in Sparta, Michigan. Spartan sells its quidgets to customers in the United States, Canada, England, and Australia. 10 points Spartan markets its products in Canada and England through branches in Toronto and London, respectively. Spartan reported total gross income on U.S. sales of $15,000,000 and total gross income on Canadian and U.K. sales of $5,000,000, split equally between the two countries. Spartan paid Canadian income taxes of $600,000 on its branch profits...
i need your help to the below picture kindly i need more
explnation
thanks
ahmad darwish
P 10-12 Tax] Taxable incomes for Pop Corporation and Son Corporation,its 70 percent-owned subsidiary, for 2016 Son Sales Dividends received from Son $1,000$600 56 1056600 500240 160 656400 Total revenue Cost of sales Operating expenses 156 Total deductions Taxable income S 400 ADDITIONAL INFORMATION 1. Pop acquined its interest in Son at a fair value equal to book value on December 31. 2o1s. 2....
Required information Postage Corporation receives management consulting services from its 92 percent-owned subsidiary. Stamp Inc. During 20X7. Postage paid Stamp $125,432 for its services. For the year 20X8, Stamp billed Postage $140,000 for such services and collected all but $7900 by year-end. Stamp's labor cost and other associated costs for the employees providing services to Postage totaled $86,000 in 20X7 and $121,000 in 20X8. Postage reported $2,567,000 of income from its own separate operations for 20X8, and Stamp reported net...
Most questions answered within 3 hours.
-
A sine wave signal is displayed on the screen of an
oscilloscope. 6 peak-to-peak divisions are...
asked 1 hour ago -
a
1500 kg car accelerates from 0 to 25 m / s in 21.0s. How much...
asked 2 hours ago -
Calculate the molarity of each of the following solutions:
(a) 30.5 g of ethanol (C2H5OH) in...
asked 2 hours ago -
1 Refer to the build-borrow-or-buy framework as a decision tree
for the Adidas company. Identify a...
asked 3 hours ago -
Problem 2: The Problem of Social Cost. A Rancher and Farmer live
side-by-side to each other....
asked 4 hours ago -
a uniform bar of weight 40N is 4 meter long. weights
on 60N and 100N are...
asked 4 hours ago -
Define Diet counceling? What are the
responsibilities of a counselor?
asked 6 hours ago -
Hey im just confused about how to put the ' A angle n' and ' S...
asked 6 hours ago -
A short essay about the WSJ article on Oreo versus Hydrox.
asked 6 hours ago -
##8. A program contains the following function definition:
##def cube(num):
##return num * num * num...
asked 6 hours ago -
find the value z of a standard Normal variable that satisfies
each of the given conditions....
asked 6 hours ago -
"banana".find('z')
Out[22]: -1
why is this -1
python 3.7
asked 6 hours ago