International Tax Aspects (LO. 8) Smile Corporation invests $2 million for a 49% interest in Irehoe, Inc., a newly formed Irish corporation that manufactures farm equipment, Jim, a U.S. resident, owns 10% of Jim owns no stock in Smile Corporation. An Irish corporation owns the remaining trehoe shares. trehoe reports a profit for the current year of $150,000 and pays no dividends. Irehoe pays no income tax in Ireland beca Round your answer to one decimal place, if necessary. What are the tax implications for Smile Corporation, Irehoe, Inc., and Jim? Smile Corporation and Jim are u shareholders who own more than use of a tax holiday for newly formed corporations with significant foreign ownership. % of the voting stock- oft ehoe a foreign corporation Forus tax pur se re e Also under the new law, a U.S. company owning at least nonprevously taxed post- 1986 foreign earnings and arofits (EsP) of the foreign subsidary. The amount Induded is net of any sogregate foreign earnings and profits dofos % of a foreign subsidiary must indude in income the shareholder's pro-rata share of the undistributed. The portion of the E&P that is cash or cash equivalents is taxed at a reduced rate of % while any remaining E&P is taxed at Feedback As a general rule, U.S. shareholders don't have income until the CFC pays; certain situations could change that. Previous Check My Work Save and Exit Submit Assignment for Grading All work saved 9:14 AM 1 4o 12/4/2018