need help asap please
Spartan Corporation manufoctures quidgets at its plant in Sparta, Michigan. Spartan sells its quidgets to customers in the United States, Canada, England, and Australia. Spartan markets its products in Canoda and England through branches in Toronto and London, respectively. Spartan reported total gross income on U.S. sales of $15,000,000 and total gross income on Canaclan and U.K. sales of $5,000,000, split equally between the two countries. Spartan paid Canadian income taxes of $600.000 on its branch profits in Canada and U.K. income taxes of $700,000 on its branch profits in the United Kingdom. Spartan financed its Canadian operations through a $10 milion capital contribution, which Spartan financed through a Ioan from Bank of America. During the current year, Spartan pald $600,000 in interest on the loan. Spartan sells its quidgets to Australian customers through its wholly owned Australian subsidiary. Spartan reported gross income of $3,000,000 on sales to its subsidiary during the year. The subsidiary paid Spartan a dividend of $670.000 on December 31 (the withholding tax is 0 percent under the U.S.-Australia treaty) Spartan paid Australian income taxes of 5330.000 on the income repatriated as a dividend. Required: a. Compute Spartan's foreign source gross income and foreign tax (direct and withhoiding) for the current year. b. Assume 20 percent of the interest paid to Bank of America is allocated to the numerator of Spartan's FTC limitation calculation. Compute Spartan Corporation's FIC limiation using your caiculation from part (a) and any excess FTC or excess FTC limitation (all of the foreign source income is put in the foreign branch FTC bosket). Complete this question by entering your answers in the tabs below. Compute Spartan's foreign source gross income and foreign tax (direct and withholding) for the current year: Note: Enter your answers in dollars not in millions of dollars. Spartan sells its quidgets to Australian customers through its wholly owned $3,000,000 on sales to its subsidiary during the year. The subsidiary paid S withholding tax is 0 percent under the U.S. -Australia treaty). Spartan paid A repatriated as a dividend. Required: a. Compute Spartan's foreign source gross income and foreign tax (direct a b. Assume 20 percent of the interest paid to Bank of America is allocated to Compute Spartan Corporation's FTC limitation using your calculation from the foreign source income is put in the foreign branch FTC basket). Complete this question by entering your answers in the tabs below. Compute Spartan's foreign source gross income and foreign tax (direct and witl Note: Enter your answers in dollars not in millions of dollars. Spartan sells its quidgets to Australian customers through its wholly owned Australian subsidiary. Spartan reported gross inc $3,000,000 on sales to its subsidiary during the year. The subsidiary paid Spartan a dividend of $670,000 on December 31 (t withholding tax is 0 percent under the U.S.-Australia treaty). Spartan paid Australian income taxes of $330,000 on the incom repatriated as a dividend. Required: a. Compute Spartan's foreign source gross income and foreign tax (direct and withholding) for the current year. b. Assume 20 percent of the interest paid to Bank of America is allocated to the numerator of Spartan's FTC limitation calcula Compute Spartan Corporation's FTC limitation using your calculation from part (a) and any excess FTC or excess FTC limit the foreign source income is put in the foreign branch FTC basket). Complete this question by entering your answers in the tabs below. Assume 20 percent of the interest paid to Bank of America is allocated to the numerator of Spartan's FTC limitation calculation. Compute Spartan Corporation's FTC limitation using your calculation from part (a) and any excess FTC or excess FTC limitation (all of the foreign source income is put in the foreign branch FTC basket). Note: Do not round intermediate calculations. Enter your answers in dollars not in millions of dollars
