E22-22 (similar to) Question Help The Blackridge Company manufactures chainsaws at its plant in Sandusky, Ohio. The company has marketing divisions throughout the world. A Blackridge marketing division in Lille, France, imports 300,000 chainsaws annually from the United States. The following information is available: E (Click the icon to view the information.) (Click to view additional information.) Read the requirements. Requirement 1. Calculate the after-tax operating income earned by the United States and French divisions from transferring 300,000 chainsaws (a) at full manufacturing cost per unit and (b) at market price of comparable imports. (Income taxes are not included in the computation Begin by calculating the after-tax operating income earned by the United States division from transferring 300,000 chain saws (a) at full manufacturing cost per unit. (Complete all answer boxes. Enter a "O" for any zero balances.) United States division: More Info Revenues Costs Full manufacturing cost Division operating income Suppose the United States and French tax authorities only allow transfer prices that are between the full manufacturing cost per unit of $190 and a market price of $250, based on comparable imports into France. The French import duty is charged on the price at which the product is transferred into France. Any import duty paid to the French authorities is a deductible expense for calculating French income taxes. Division income taxes Division after-tax operating income Print Done Data Table 40% U.S income tax rate on the U.S. division's operating income French income tax rate on the French division's operating income French import duty Variable manufacturing cost per chainsaw Full manufacturing cost per chainsaw Selling price (net of marketing and distribution costs) in France 45% 20% 135 190 300 $ $ $ A Print Print Done Done] E22-22 (similar to) Question Help The Blackridge Company manufactures chainsaws at its plant in Sandusky, Ohio. The company has marketing divisions throughout the world. A Blackridge marketing division in Lille, France, imports 300,000 chainsaws annually from the United States. The following information is available: E (Click the icon to view the information.) (Click to view additional information.) Read the requirements. Requirement 1. Calculate the after-tax operating income earned by the United States and French divisions from transferring 300,000 chainsaws (a) at full manufacturing cost per unit and (b) at market price of comparable imports. (Income taxes are not included in the computation Begin by calculating the after-tax operating income earned by the United States division from transferring 300,000 chain saws (a) at full manufacturing cost per unit. (Complete all answer boxes. Enter a "O" for any zero balances.) United States division: More Info Revenues Costs Full manufacturing cost Division operating income Suppose the United States and French tax authorities only allow transfer prices that are between the full manufacturing cost per unit of $190 and a market price of $250, based on comparable imports into France. The French import duty is charged on the price at which the product is transferred into France. Any import duty paid to the French authorities is a deductible expense for calculating French income taxes. Division income taxes Division after-tax operating income Print Done Data Table 40% U.S income tax rate on the U.S. division's operating income French income tax rate on the French division's operating income French import duty Variable manufacturing cost per chainsaw Full manufacturing cost per chainsaw Selling price (net of marketing and distribution costs) in France 45% 20% 135 190 300 $ $ $ A Print Print Done Done]
