Boca Corporation, a U.S. corporation, received a dividend of $814,000 from its 100 percent owned Swiss subsidiary. The dividend is eligible for the 100 percent dividends received deduction. A 5 percent withholding tax ($54,000) was imposed on the dividend. What amount of taxable income does the dividend generate on Boca's U.S. tax return and what is the company's net U.S. tax, assuming the companyhas $228,000 of U.S. source taxable income and the FTC limitation is not binding?

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The Answer of Boca Corporation, a U.S. corporation, received a dividend of $814,000 from its 100 percent owned Swiss subsidiary. The dividend is eligible for the 100 percent dividends received deduction. A 5 percent withholding tax ($54,000) was imposed on the dividend. What amount of taxable income does the dividend generate on Boca's U.S. tax return and what is the company's net U.S. tax, assuming the companyhas $228,000 of U.S. source taxable income and the FTC limitation is not binding?