Avon's Foreign-Source Income. Avon is a U.S-based direct seller of a wide array of products. Avon markets leading beauty, fashion, and home products in more than 100 countries. As part of the training in its corporale treasury offices, it has its interns build a spreadsheet analysis of the following hypothetical subsidiary earnings/distribution analysis. Use the tax analysis presented in the popup window for your basic structure, a. What is the total tax payment, forsign and domestic combined, for this income? b. What is the effective tax rate paid on this income by the U.S.-based parent company? c. What would be the total tax payment and effective tax rate if the foreign corporate tax rate was 42% and there were no withholding taxes on dividends? d. What would be the total tax payment and effective tax rate if the income was earned by a branch of the U.S. corporation? a. What is the total tax payment foreign and domestic combined, for this income? s (Round to the nearest dollar.) b. What is the effective tax rate paid on this income by the U.S.-based parent company? % (Round to one decimal place.) c. What would be the total tax payment of the foreign corporate tax rate was 42% and there were no withholding taxes on dividende? S (Round to the nearest dollar.) What would be the effective tax rate if the foreign corporate tax rate was 42% and there were no withholding taxes on dividends? % (Round to one decimal place.) d. What would be the total tax payment if the income was eamed by a branch of the U.S. corporation? (Round to the nearest dollar.) What would be the effective tax rate if the income was earned by a branch of the U.S. corporation? % (Round to one decimal place.) Enter your answer in each of the answer boxes. ? Data Table 6.-based direct ollowing hypoth As part of the train Je, mestic combir ome by the U. ective tax rate ective tax rate Baseline Values a Foreign corporate income tax rate b U.S. corporate income tax rate Foreign dividend withholding tax rate d U.S. ownership in foreign firm Dividend payout rate of foreign firm Case 1 25% 36% 15% 100% 100% Case 2 42% 36% 0% 100% 100% mestic combir e ome by the U. $3,400,000 (850,000) $2,550,000 reign corporat Foreign Subsidiary Tax Computation 1 Taxable income of foreign subsidiary 2 Foreign corporate income tax 3 Net income available for distribution 4 Retained earnings 5 Distributed earnings 6 Distribution to U.S. parent company 7 Withholding taxes on dividends 8 Net remittance to U.S. parent $3,400,000 (1,428,000) $1,972,000 0 1,972,000 1,972,000 0 $1,972,000 2,550,000 2,550,000 382,500 $2,167,500 un corporate ta come was ear $2,550,000 850,000 $3,400,000 1,224,000 $1,972,000 1,428,000 $3,400,000 1,224,000 he was earned U.S. Corporate Tax Computation on Foreign Income 9 Dividend received before withholding 10 Add back foreign deem-paid tax 11 Grossed-up foreign dividend 12 Tentative U.S. liability 13 Less credit for foreign taxes a foreign income taxes paid b foreign withholding taxes paid c total 14 Additional U.S. taxes due 15 Excess foreign tax credits 16 Aftor tov income from forsian cuboidiani (850,000) (382,500) ($1,232,500) $0 8,500 (1,428,000) (0) ($1,428,000) $0 204,000 02176 non 176 Onn es. Print Done Avon's Foreign-Source Income. Avon is a U.S.-based direct seller of a wide array of products. Avon markets leading beauty, fashion, and home products in more than 100 countries. As part of the training in its corporate treasury offices, it has its interns build a spreadsheet analysis of the following hypothetical subsidiary earnings/distribution analysis. Use the tax analysis presented in the popup window for your basic structure, a. What is the total tax payment, foreign and domestic combined, for this income? b. What is the effective tax rate paid on this income by the U.S.-based parent company? c. What would be the total tax payment and effective tax rate if the foreign corporate tax rate was 42% and there were no withholding taxes on dividends? d. What would be the total tax payment and effective tax rate if the income was earned by a branch of the U.S. corporation? a. What is the total tax payment, foreign and domestic combined, for this income? (Round to the nearest dollar.) b. What is the effective tax rate paid on this income by the U.S.-based parent company? % (Round to one decimal place.) c. What would be the total tax payment if the foreign corporate tax rate was 42% and there were no withholding taxes on dividends? $ (Round to the nearest dollar.) What would be the effective tax rate if the foreign corporate tax rate was 42% and there were no withholding taxes on dividends? % (Round to one decimal place.) d. What would be the total tax payment if the income was earned by a branch of the U.S. corporation? (Round to the nearest dollar.) Enter your answer in each of the answer boxes. ? Avon's Foreign-Source Income. Avon is a U.S-based direct seller of a wide array of products. Avon markets leading beauty, fashion, and home products in more than 100 countries. As part of the training in its corporale treasury offices, it has its interns build a spreadsheet analysis of the following hypothetical subsidiary earnings/distribution analysis. Use the tax analysis presented in the popup window for your basic structure, a. What is the total tax payment, forsign and domestic combined, for this income? b. What is the effective tax rate paid on this income by the U.S.-based parent company? c. What would be the total tax payment and effective tax rate if the foreign corporate tax rate was 42% and there were no withholding taxes on dividends? d. What would be the total tax payment and effective tax rate if the income was earned by a branch of the U.S. corporation? a. What is the total tax payment foreign and domestic combined, for this income? s (Round to the nearest dollar.) b. What is the effective tax rate paid on this income by the U.S.-based parent company? % (Round to one decimal place.) c. What would be the total tax payment of the foreign corporate tax rate was 42% and there were no withholding taxes on dividende? S (Round to the nearest dollar.) What would be the effective tax rate if the foreign corporate tax rate was 42% and there were no withholding taxes on dividends? % (Round to one decimal place.) d. What would be the total tax payment if the income was eamed by a branch of the U.S. corporation? (Round to the nearest dollar.) What would be the effective tax rate if the income was earned by a branch of the U.S. corporation? % (Round to one decimal place.) Enter your answer in each of the answer boxes. ? Data Table 6.-based direct ollowing hypoth As part of the train Je, mestic combir ome by the U. ective tax rate ective tax rate Baseline Values a Foreign corporate income tax rate b U.S. corporate income tax rate Foreign dividend withholding tax rate d U.S. ownership in foreign firm Dividend payout rate of foreign firm Case 1 25% 36% 15% 100% 100% Case 2 42% 36% 0% 100% 100% mestic combir e ome by the U. $3,400,000 (850,000) $2,550,000 reign corporat Foreign Subsidiary Tax Computation 1 Taxable income of foreign subsidiary 2 Foreign corporate income tax 3 Net income available for distribution 4 Retained earnings 5 Distributed earnings 6 Distribution to U.S. parent company 7 Withholding taxes on dividends 8 Net remittance to U.S. parent $3,400,000 (1,428,000) $1,972,000 0 1,972,000 1,972,000 0 $1,972,000 2,550,000 2,550,000 382,500 $2,167,500 un corporate ta come was ear $2,550,000 850,000 $3,400,000 1,224,000 $1,972,000 1,428,000 $3,400,000 1,224,000 he was earned U.S. Corporate Tax Computation on Foreign Income 9 Dividend received before withholding 10 Add back foreign deem-paid tax 11 Grossed-up foreign dividend 12 Tentative U.S. liability 13 Less credit for foreign taxes a foreign income taxes paid b foreign withholding taxes paid c total 14 Additional U.S. taxes due 15 Excess foreign tax credits 16 Aftor tov income from forsian cuboidiani (850,000) (382,500) ($1,232,500) $0 8,500 (1,428,000) (0) ($1,428,000) $0 204,000 02176 non 176 Onn es. Print Done Avon's Foreign-Source Income. Avon is a U.S.-based direct seller of a wide array of products. Avon markets leading beauty, fashion, and home products in more than 100 countries. As part of the training in its corporate treasury offices, it has its interns build a spreadsheet analysis of the following hypothetical subsidiary earnings/distribution analysis. Use the tax analysis presented in the popup window for your basic structure, a. What is the total tax payment, foreign and domestic combined, for this income? b. What is the effective tax rate paid on this income by the U.S.-based parent company? c. What would be the total tax payment and effective tax rate if the foreign corporate tax rate was 42% and there were no withholding taxes on dividends? d. What would be the total tax payment and effective tax rate if the income was earned by a branch of the U.S. corporation? a. What is the total tax payment, foreign and domestic combined, for this income? (Round to the nearest dollar.) b. What is the effective tax rate paid on this income by the U.S.-based parent company? % (Round to one decimal place.) c. What would be the total tax payment if the foreign corporate tax rate was 42% and there were no withholding taxes on dividends? $ (Round to the nearest dollar.) What would be the effective tax rate if the foreign corporate tax rate was 42% and there were no withholding taxes on dividends? % (Round to one decimal place.) d. What would be the total tax payment if the income was earned by a branch of the U.S. corporation? (Round to the nearest dollar.) Enter your answer in each of the answer boxes