Kiwi Corporation is a 100 percent owned Australian subsidiary of Exotic Fruit Corporation,a U.S.corporation.Kiwi had post-1986 earnings and profits of 1,000,000 Australian dollars (AUD)and post-1986 foreign taxes of $225,000.During the current year,Kiwi paid a dividend of 250,000 AUD to Exotic Fruit.Assume an exchange rate of 1 AUD = $0.75.No withholding tax was imposed on the dividend.What amount of taxable income does the dividend generate on Exotic's U.S.tax return?

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The Answer of Kiwi Corporation is a 100 percent owned Australian subsidiary of Exotic Fruit Corporation,a U.S.corporation.Kiwi had post-1986 earnings and profits of 1,000,000 Australian dollars (AUD)and post-1986 foreign taxes of $225,000.During the current year,Kiwi paid a dividend of 250,000 AUD to Exotic Fruit.Assume an exchange rate of 1 AUD = $0.75.No withholding tax was imposed on the dividend.What amount of taxable income does the dividend generate on Exotic's U.S.tax return?

Kiwi Corporation Is a 100 Percent Owned Australian Subsidiary of Exotic