Question

In: Accounting

HomeShop has a branch/local office in Japan. HomeShop sells 30000 units to customers in Bulgaria and...

HomeShop has a branch/local office in Japan. HomeShop sells 30000 units to customers in Bulgaria and 100000 units to customers in Japan. Profit per unit is € 89 (Ignore all other costs). All profits are repatriated from Japan. The corporate tax rate in Bulgaria is 40% and 32% in Japan.

1. With no Tax relief agreement in Japan, what are the total taxes that HomeShop has to pay in both countries?

2. Now assume that there is a possibility to use foreign tax credit (FTC) in Bulgaria. What will be the total taxes HomeShop has to pay in this scenario in both countries?

Solutions

Expert Solution


Related Solutions

HomeShop has a branch/local office in Japan. HomeShop sells 30000 units to customers in Bulgaria and...
HomeShop has a branch/local office in Japan. HomeShop sells 30000 units to customers in Bulgaria and 100000 units to customers in Japan. Profit per unit is € 89 (Ignore all other costs). All profits are repatriated from Japan. The corporate tax rate in Bulgaria is 40% and 32% in Japan. 1. With no Tax relief agreement in Japan, what are the total taxes that HomeShop has to pay in both countries? 2. Now assume that there is a possibility to...
During the early morning hours, customers arrive at a branch post office at an average rate...
During the early morning hours, customers arrive at a branch post office at an average rate of 45 per hour (Poisson), while clerks can handle transactions in an average time (exponential) of 4 minutes each. Fill in the following information: Lq = Avg Number in Line Wq = Avg Time in Line Ws = Avg Time in System For M = 7: Lq = 0.028 Wq = 0.0006 Hours Wq = 0.0373 Minutes Ws = 4.0373 Minutes For M =...
A bank has recently acquired a new branch and thus has customers in this new region....
A bank has recently acquired a new branch and thus has customers in this new region. They are interested in the default rate in their new region. They wish to test the hypothesis that the default rate is different from their current customer base. They sample 200 files in area A, their current customers, and find that 20 have defaulted. In area B, the new customers, another sample of 200 files shows 12 have defaulted on their loans. At the...
A bank has recently acquired a new branch and thus has customers in this new territory....
A bank has recently acquired a new branch and thus has customers in this new territory. They are interested in the default rate in their new territory. They wish to test the hypothesis that the default rate is different from their current customer base. They sample 81 files in area A, their current customers, and find that 48 have defaulted. In area B, the new customers, another sample of 103 files shows 72 have defaulted on their loans. What is...
Panera has recently acquired a new branch and thus has customers in this new territory. They...
Panera has recently acquired a new branch and thus has customers in this new territory. They are interested in the default rate in their new territory. They wish to test the hypothesis that the default rate is different from their current customer base. They sample 93 files in area A, their current customers, and find that 42 have defaulted. In area B, the new customers, another sample of 90 files shows 79 have defaulted on their loans. What is the...
A. Your branch has just started the day’s business and many customers are thronging to get...
A. Your branch has just started the day’s business and many customers are thronging to get banking services. Suddenly the computer system breaks down and the customers and staff are complaining as this problem happens frequently. What should you do? B. Encik Bahari is a long standing customer of your branch. He applied for a housing loan recently and your head office approved the loan at an interest rate of BLR + 2%. Encik Bahari requests for your goodwill as...
A small branch bank has two tellers, one for deposits and one for withdrawals. Customers arrive...
A small branch bank has two tellers, one for deposits and one for withdrawals. Customers arrive at each teller’s window with an average rate of 18 customers per hour. (The total customer arrival rate is 36 per hour.) The interarrival times are exponential. The service time of each teller is exponential with a mean of 3 minutes. The bank manager is considering changing the setup to allow each teller to handle both withdrawals and deposits to avoid the situations that...
Soccer Outlet sells soccer equipment to both local teams and individual customers. They need to decide...
Soccer Outlet sells soccer equipment to both local teams and individual customers. They need to decide whether to order 100, 200, 300, or 400 pairs of the latest type of soccer shoe that has just come on the market. Soccer Outlet will sell these shoes for PhP1400 per pair after paying PhP1000 per pair from the manufacturer. After the current soccer season ends, Soccer Outlet will discount any remaining pairs to PhP500. Assume the demand for these shoes can be...
E-Z Mart A local E-Z Mart sells popular grocery items to their customers. One of the...
E-Z Mart A local E-Z Mart sells popular grocery items to their customers. One of the most popular items that are purchased is low-fat milk. Currently, the store sells a gallon of low-fat milk to their customers for $3.00/gallon. Currently, the manager orders 62 jugs of low-fat milk per week from the local distributor at a cost of $2.00/gallon. The demand of 1-gallon jugs of low-fat milk has varied between 60 and 70 jugs per week at a local E–Z...
Q68 A branch of BNP-Paribas has an attractive credit programme. Customers meeting certain requirements can obtain...
Q68 A branch of BNP-Paribas has an attractive credit programme. Customers meeting certain requirements can obtain a credit card called “BNP Wunder”. Local merchants in surrounding communities accept this card. The advantage is that with this card, goods can be purchased at a 2% discount and further, there is no annual cost for the card. Past data indicates that 35% of all card applicants are rejected because of unsatisfactory credit. Assuming that credit acceptance, or rejection, is a Bernoulli process,...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT