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Freiburg,Ltd

Question 125

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Freiburg,Ltd.,a foreign corporation,operates a U.S.branch that reports effectively connected U.S.earnings and profits (after income taxes) of $900,000 for the tax year.The branch's U.S.net equity at the beginning of the tax year is $3.5 million and at the end of the tax year is $2 million.Freiburg is organized in a nontreaty country.Compute Freiburg's branch profits tax for the year.

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The branch profits tax is equal to 30% o...

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