International Taxation Question

Tenco, a domestic corporation, manufactures tennis rackets for sale in the United States and abroad. Tenco owns 100% of the stock of Teny, a foreign sales subsidiary that was organized in Year 1. During Year 1, Teny had $15 million of foreign base company sales income, paid $1 million in foreign income taxes, and distributed no dividends. During Year 2, Teny had no earnings and profits, paid no foreign income taxes, and distributed a $14 million dividend.

Assuming the U.S. corporate tax rate is 21%, what are the U.S. tax consequences of Teny’s Year 1 and Year 2 activities?

The patient was a 28-year-old female who came to the United States from the Philippines 5 years ago. Two years ago, she was diagnosed with systemic lupus erythemathosus. On admission, she stated that she had a persistent fever of 38-39°C for the past 4 weeks. Approximately 4 weeks ago the entire family became ill. The patient and her husband had symptoms consistent with an upper respiratory infection, and the children had tonsillitis but improved. The patient and her husband were prescribed azithromycin, but only her husband improved. The patient had anorexia with 15 lb of unintentional weight loss in the past few months, as well as nausea and lethargy. Her physical examination was relatively benign with the exception of an abnormal chest CT scan showing small granulomas throughout her lungs. The patient was sent for a bronchoscopy, and lavage fluid was sent to the lab for bacterial, fungal and mycobacterial cultures and stains. The bronchoalveolar lavage fluid rendered acid-fast organisms.

1. What organism was most likely causing the infection?

2. Describe the natural history of infection with these organisms. Explain the role of the host immune system (cells, cytokines) in the development of the disease.

3. The organism isolated from this patient showed resistance to Isoniazid, rifampin, pyrazinamide, ethionamide, capreomycin. How would you classify this organism? What is the global prevalence of this disease? What is the significance of her being from the Philippines?

4. What is a PPD skin test (also called Mantoux or tuberculin test)? What is its value for the patient? What additional tests are available for detecting latent infection with this organism?

President Trump has criticized Amazon on many instances for causing the United States Postal Service to lose billions of dollars every year. Below is a recent quote from the president,

“Amazon and other companies like it, they come and they drop all of their mail into a post office,” Trump said in an interview with ‘Fox & Friends.’ “They drop packages into the post office by the thousands and then they say, ‘Here, you deliver them.’ We lose $3 and $4 a package on average. We lose massive amounts of money.”(CNBC, 2020)

From other sites I have gathered the following information. The USPS states

Total operating revenue for USPS in 2019 was roughly $71 billion, $3.9 billion came was received from Amazon alone. The total costs in 2019 were roughly 80 billion .The net reported loss was $8.8 billion (USPS, 2020)¹. Fixed costs for USPS have been over 40 percent of total costs in the past, and possibly increasing significantly due to increasing payments to retirees. Whether or not you agree with the statement by Trump, based on what we have learned about costs in class answer the following questions in your video:

1. Are the USPS’s losses increased or decreased by delivering packages for Amazon?
2. Amazon has discussed building its own airport and internalizing the delivery of its packaging. Explain whether or not this would benefit the USPS and why.

Read the following online excerpts,

“The 2018 global trade war began with a single United States safeguard tariff on washing machines and solar cell panels in January. It subsequently picked up steam as the year progressed and developed into an all-out trade tariff war. Its cause centers on President Trump's ostensible belief that trade deficits with countries around the world are hurting the U.S. economy, in particular the manufacturing industry. By imposing tariffs, Trump aims to cut the deficits and therefore, he claims, boost the domestic U.S. manufacturing sector. However, leading economists believe that the tariffs will either harm the US economy or have no effect whatsoever. The Trump administration has targeted China, the 27-member European Union, and neighbors Mexico and Canada.” (OANDA, 2018)

“Dramatically escalating the trade war between the United States and China, President Donald Trump on Friday said he would raise tariffs on $550 billion in Chinese goods in response to new barriers imposed by Beijing.” (Fritze, 2019)

1. China's currency (the Yuan) has slipped to its lowest level in a decade on Thursday, August 23, 2019. What is the impact of a weaker Yuan to the price of its exports and the price of its imports?

2. Research on the topic of currency movements. Would managers engage in international business prefer stable or unstable currency movements? Why or why not?

Please answer all, thank you.

1. If cats become a more popular pet in the United States than they are now, what can we expect to happen to the market for cat food workers?
   1. wage decreases
   2. MP increases    
   3. MRP decreases
   4. MRP increases

2. Which of the following could be a perfectly competitive market?
   1. the market for patented pharmaceuticals            
   2. the market for restaurants with permits to sell alcohol   
   3. the market for tradable stocks  
   4. the market for licensed electricians

3. Suppose the price of HD televisions decreases. As a result, the
   1. MRP of the workers making HD televisions will increase.
   2. MP of the workers making HD televisions will increase.  
   3. MRP of the workers making HD televisions will decrease.             
   4. MFC of the workers making HD televisions will increase.

4. Suppose the Tidy Laundry Detergent Company, which sells 40% of all detergent, is thinking about raising its price. Before Tidy makes the change, they analyze the likely responses of the All-Clean Detergent Company, which sells 35% of all detergent, and Cheerful Detergent Company, which sells 20% of all detergent. Tidy's behavior shows
   1. nonprice competition.  
   2. collusion.            
   3. mutual interdependence in pricing decisions.     
   4. difficult entry in oligopolies.       

5. If the marginal cost of the 5,000th unit is $0.06 and the average total cost of the 5,000th unit is $0.10:
   1. average total cost is falling.         
   2. total cost is falling.          
   3. average variable cost is falling.  
   4. average fixed cost is rising.

6. What is the largest possible loss that is consistent with a firm producing in a perfectly competitive market in long-run competitive equilibrium?
   1. an amount equal to total fixed cost         
   2. zero      
   3. an amount equal to total variable            
   4. an amount equal to price minus average variable cost

7. Which of the following is not one of the work disincentive criticisms of welfare programs?
   1. Welfare provides income that is easier to obtain than by working, so poor are induced to reduce their work effort.
                     
      b. The more a welfare recipient earns from a job, the fewer the benefits he or she receives.         
   2. Because welfare benefits are paid for with money collected from taxes and these taxes reduce take home pay for those working, the reward for work is reduced.     
   3. Bureaucracy associated with welfare results in more money in the hands of bureaucrats than in the hands of the poor.

8. Suppose there are four buyers all considering purchasing round-trip airfare from Boston to Miami with the following price elasticities of demand for this purchase: Buyer A: 1.5, Buyer B: 0.7, Buyer C: 1.0, Buyer D: 2.3. If the airline knows of these elasticities and practices price discrimination, which buyer will pay the highest price for the airfare?
   1. Buyer C
   2. Buyer D
   3. Buyer A
   4. Buyer B

9. Why do economies of scale and monopoly power exist with network goods?
   1. As the number of people connected to a network increases, the greater the benefits each person gets and the smaller the cost per unit to supply.         
   2. Many small firms must develop to serve all of the consumers willing to pay for access to the network good, so their costs are driven down.     
   3. Network goods require a group of sellers working together and this cooperation reduces the firms' cost per unit.     
   4. Just as the value of a network good decreases to each user as the total number of users increases, so does the long run average cost decrease as output increases.     

10. What happens to the marginal product of labor when the market price of the good produced increases?
    1. Decreases proportional to price.               
    2. Stays the same.
    3. Falls because quantity demanded falls.
    4. Increases proportional to price.

Break-Even Analysis

Rotelco is one of the largest digital wireless service providers in the United States. In a recent year, it had approximately 100 direct subscribers (accounts) that generated revenue of $52,900. Costs and expenses for the year were as follows:

Assume that 60% of the cost of revenue and 25% of the selling, general, and administrative expenses are variable to the number of direct subscribers (accounts).

a. What is Rotelco's break-even number of accounts, using the data and assumptions above? Round to the nearest whole number.
_______ accounts

b. How much revenue per account would be sufficient for Rotelco to break even if the number of accounts remained constant? Round to the nearest dollar.
_______$ per account

I HAVE TRIED 64 AND 65 AS THE ANSWER TO THE FIRST PART OF THE QUESTION. I HAVE ALSO ASKED OTHER EXPERTS BUT NOTHING IS COMING UP RIGHT. PLEASE HELP

Walker Inc. has two divisions, Circuit and Satellite, both located in the United States. The Circuit division produces an electronic component, circuit no. 222, which is sold to external customers. The variable production cost for circuit 222 is $140. The division has the capacity to manufacture 100,000 of this circuit each year. The fixed cost of production is $20 per unit (unitized at the full capacity of 100,000 units).

Recently, the Satellite division of the company has expressed interest in procuring 50,000 units of a slightly modified version of circuit 222. The Satellite division plans to use this component in manufacturing a global positioning system. While the production capacity and fixed costs of Circuit division would remain unchanged, the required modification would increase its variable cost of production to $155 per unit. The Satellite system can procure a comparable component from an external vendor for a price of $180 per unit.

1) Assume that Circuit division can sell up to 100,000 units of circuit 222 in the external market for $170/unit.

(a) To maximize company-wide profits, should the Satellite division be required to acquire the necessary part from Circuit division or from the external vendor? Support your answer with calculations.

(b) What transfer price would induce the two divisional managers to make goal congruent decisions?

(c) Assume now that the Circuit division is at full capacity and can sell its output at $170 per unit in the open market. Circuit division can outsource a component of the part that Satellite division needs and this will lower the variable cost of production of the satellite division circuit board by $8 per unit. Should Circuit division make the circuit board for the Satellite division and what will be the transfer price?

2) Now assume that Circuit division can sell only 50,000 units of circuit 222 in the external market for $170/unit.

(a) To maximize company-wide profits, should Satellite division be required to acquire the necessary components from Circuit division or from the external vendor? Support your answer with calculations.

(b) What transfer price would induce the two divisional managers to make goal congruent decisions?

3) Now assume that Circuit division can only sell 50,000 units of circuit 222 in the external market for $170/unit. However, Circuit division is currently considering a special one-time order from a Mexican company which is willing to pay $160 per unit for additional 50,000 units.

(a) To maximize company-wide profit, should Satellite division be required to acquire the necessary components from Circuit division or from the external vendor? Support your answer with calculations.

(b) What transfer price would induce the two divisional managers to make goal congruent decisions?

Costco Wholesale Corporation operates more than 600 warehouse stores in the United States and abroad. The following items were in a slightly simplified version of the company’s statement of cash flows for the fiscal year ending August 28,2011 (in millions):

The company’s income statement showed (in millions):

b) Prepare a statement of cash flows from operating activities using the direct method. Assume that all other expenses and income taxes were paid in cash, all operating liabilities relate to operating expenses, and that all depreciation and other noncash expenses are included in operating expenses.

I need help with this question.