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In the current year, AquaLux Soapworks, Ltd. (a foreign corporation from a country that has a US tax treaty) earned $10,000,000 of US source gross
In the current year, AquaLux Soapworks, Ltd. (a foreign corporation from a country that has a US tax treaty) earned $10,000,000 of US source gross profit from selling handmade soap in the US. In addition, the company had the following US source investment income in the current year (none of which is related to the US soap business): $50,000 interest income $10,000 dividend income $40,000 capital gain $420,000 gross rental income This is the first year AquaLux has had any US source income and the company doesn't know anything about the US tax law. AquaLux has come to you for help understanding the US tax consequences of these activities and any recommendations that might help manage its US tax liability. The information above is incomplete. What questions would you ask AquaLux to get the additional facts required to explain how the US will tax the income above? For each question listed, provide a brief explanation of why you need this information.
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