Sunny,a California corporation,earned the following income this year. Sunny owns 100% of Sun de Sud,a foreign corporation operating a business in Country M and paying foreign income tax at a 50% rate.Sunny paid $124,000 foreign income tax to Country L,$203,000 income tax to Country Q,and no foreign withholding tax on its Sun de Sud dividends.Assuming a 34% tax rate,compute Sunny's U.S.tax.

Question

Sunny,a California corporation,earned the following income this year.   Sunny owns 100% of Sun de Sud,a foreign corporation operating a business in Country M and paying foreign income tax at a 50% rate.Sunny paid $124,000 foreign income tax to Country L,$203,000 income tax to Country Q,and no foreign withholding tax on its Sun de Sud dividends.Assuming a 34% tax rate,compute Sunny's U.S.tax.

Quizplus · Accepted Answer

The Answer of Sunny,a California corporation,earned the following income this year.   Sunny owns 100% of Sun de Sud,a foreign corporation operating a business in Country M and paying foreign income tax at a 50% rate.Sunny paid $124,000 foreign income tax to Country L,$203,000 income tax to Country Q,and no foreign withholding tax on its Sun de Sud dividends.Assuming a 34% tax rate,compute Sunny's U.S.tax.

Sunny,a California Corporation,earned the Following Income This Year