P Corporation is the U.S.-based parent of F Company, a French-based branch.If P Corporation has U.S.taxable income of $100,000 and F Company has a $20,000 loss, what is P Corporation's worldwide taxable income?

Question

Quizplus · Accepted Answer

The worldwide taxable income of P Corporation is the sum of its U.S. taxable income and the taxable income of its foreign branches. Since F Company has a loss, it cannot be included in the calculation of the worldwide taxable income. Therefore, P Corporation's worldwide taxable income would be $100,000.

P Corporation Is the U