Question
In: Accounting
??A? U.S.-based MNC has a foreign subsidiary that earns $ 252000 before local? taxes, with all...
??A? U.S.-based MNC has a foreign subsidiary that earns $ 252000 before local? taxes, with all the? after-tax funds to be available to the parent in the form of dividends. The applicable taxes consist of a 33 % foreign income tax? rate, a foreign dividend withholding tax rate of 9.6 %?, and a U.S. tax rate of 30 %. Calculate the net funds available to the parent MNC? if:
a.??Foreign taxes can be applied as a credit against the? MNC's U.S. tax liability.
b.??No tax credits are allowed.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
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Inventory
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4,180
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Cash
NGN
16,400
Notes payable
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20,200
Inventory
11,000
Common stock
21,200
Land
4,100
Retained earnings
10,600
Building
41,000
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52,000
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Notes payable
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where the local currency unit is the naira (NGN). On December 31,
2016, the subsidiary had the following balance sheet (amounts are
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Cash
NGN
16,400
Notes payable
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20,200
Inventory
11,000
Common stock
21,200
Land
4,100
Retained earnings
10,600
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41,000
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