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Ggot done with a and b my last c was wrong Pacific Jewel Airlines (Hong Kong). Pacific Jewel Airlines is a U.S.-based air freight firm

image text in transcribedimage text in transcribedGgot done with a and b my last c was wrong

Pacific Jewel Airlines (Hong Kong). Pacific Jewel Airlines is a U.S.-based air freight firm with a wholly owned subsidiary in Hong Kong. The subsidiary, Jewel Hong Kong, has just completed a long-term planning report for the parent company in San Francisco,__ , in which it has estimated the following expected earnings and payout rates for the years 20112014. The current Hong Kong corporate tax rate on this category of income is 15%. Hong Kong imposes no withholding taxes on dividends remitted to U.S. investors (per the Hong Kong - United States bilateral tax treaty). The U.S. corporate income tax rate is 36%. The parent company wants to repatriate 85% of net income as dividends annually. a. Calculate the net income available for distribution by the Hong Kong subsidiary for the years 2011-2014. b. What is the expected amount of the dividend to be remitted to the U.S. parent each year? c. After estimating the theoretical U.S. tax liability on the expected dividend (what is often termed gross-up in the U.S.), what is the total dividend after tax, including all Hong Kong and U.S. taxes, expected each year? d. What is the effective tax rate on this foreign-sourced income per year? c. Calculate the total dividend after tax, including all Hong Kong and U.S. taxes, for the years 2011-2014 in the following table. (Round to the nearest dollar.) \begin{tabular}{llcccc} United States Taxation: Grossup & 2011 & 2012 & 2013 & 2014 \\ \hline Net dividend remitted & $ & 5,852$ & 7,153$ & 8,453$54 \end{tabular} Add back proportion of foreign income taxes Add back withholding taxes paid Grossed-up dividend for U.S. tax purposes \begin{tabular}{llllr} 0 & 0 & 0 & 0 \\ \hline$$$W \end{tabular} Theoretical U.S. tax liability Foreign tax credits Additional U.S. tax due After-tax net dividend $ $ $ $

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