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R a firm residing in A, a country that uses the following progressive schedule Taxable Rest of Taxable Tax income income Marginal Tax Rate
R a firm residing in A, a country that uses the following progressive schedule Taxable Rest of Taxable Tax income income Marginal Tax Rate 0 0 10,000 20% 10,000 2,000 20,000 30% 30,000 8,000 30,000 40% 60,000 20,000 onwards 50% We know that R has the following sources of income: Income Foreign tax paid Income from Business Activities in country X 40,000 10,000 Dividends from country X 20,000 5,000 Income from Business Activities in 50,000 30,000 country Z Income earned in A (residence) 60,000 Calculate the taxes to be paid by R, in country A and in the other countries (X and Z), using the credit method a country- by-country limitation.
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