Subco is a 100 percent owned foreign subsidiary of Parco, a resident Canadian company. During 2020, Subco earns $250,000 of investment income and pays 15 percent tax on this income in the foreign jurisdiction. None of the after tax income is paid out as dividends. What is the effect of this information on Parco's 2020 Net Income For Tax Purposes?

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The Answer of Subco is a 100 percent owned foreign subsidiary of Parco, a resident Canadian company. During 2020, Subco earns $250,000 of investment income and pays 15 percent tax on this income in the foreign jurisdiction. None of the after tax income is paid out as dividends. What is the effect of this information on Parco's 2020 Net Income For Tax Purposes?

Subco Is a 100 Percent Owned Foreign Subsidiary of Parco