Please help me with the HW of International Taxation I. See the attached file.

ACCT 8036 - Module 4 Homework - Export Incentives - IC-DISCs For all of the following questions, USACo is a domestic manufacturing corporation that exports a portion of its products; USACo is an S-Corporation wholly owned by John Client (John pays the tax on the income of USACo). John Client has created an IC-DISC, of which he is also the sole owner. Assume the regular income tax rate is 40%; the dividends tax rate is 20%; the current market rate for 52-week T-bills is 1%. 1. What annual income tax return must be filed by the IC-DISC each year to report its income? 1 point. 2. What is the minimum par value of stock for an IC-DISC? 1 point. 3. Who is subject to tax on the income of an IC-DISC? Is the IC-DISC itself subject to income tax? Is John Client subject to income tax? Explain. 4 points. 4. Discuss the three main requirements for qualifying export property. 6 points. 5. USACo has $2,500,000 of qualified export sales in 2015. Total direct and indirect costs related to exports are $2,200,000. Answer all 3 parts below; show your work; 12 points. a. Compute the 2015 IC-DISC commission using the 4% of qualified export receipts method. b. Compute the 2015 IC-DISC commission using the 50 percent of combined taxable income method. c. Compute the maximum overall tax savings for 2014 from the use of an IC-DISC. 6. USACo has two product lines - Widgets and Fidgets. USACo wants to maximize the IC-DISC commission in 2015 by grouping export sales by product line. 2015 data for exports by product line is as follows: Widgets Fidgets $1,000,000 Gross receipts $2,000,000 Gross receipts ($950,000) Direct & indirect costs ($1,700,000) Direct & indirect costs $50,000 Combined taxable income $300,000 Combined taxable income Answer both parts below; show your work; 10 points. a. Compute the 2015 IC-DISC commission using grouping. b. Compute the overall tax savings for 2015 from the use of an IC-DISC. 7. At the end of 2015, $25,000 of IC-DISC income was neither actually distributed nor deemed distributed. Answer the following questions; 6 points. a. What Form must John Client file regarding the interest due on deferred IC-DISC income? b. Compute the amount of interest that John Client will owe in regards to the deferred IC-DISC income. c. Are estimated tax payments required during the course of the year for the interest owed in regards to this