Robin Food Centers, Inc. Inbound Taxation (10 points)

Robin Food Centers is an Argentina corporation with operations in the United States and Argentina. Below is the income and expenses reported in Robins U.S. tax return. Based solely on the income statement below:

1. Calculate the U.S. tax due by Robin. Hint: U.S. does not have a treaty with Argentina.

2. Determine if Robin is subject to the BEAT minimum tax. If so, what is the additional BEAT tax liability

ROBIN FOOD CENTERS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (United States)

(Dollars in thousands except for per share data)

Sales		$	659,452
Cost of goods sold (Includes $124,750 paid to a foreign related party)		(433,735
Gross margin		225,717
Operating expenses:
Payroll expense (Paid to a foreign related party)		(153,380
Executive Salaries		(1,747
Depreciation and amortization		(16,997
Operating income (loss)		53,593
Interest income (Not effectively connected to U.S. Trade or business)		12,185
Earnings from operations		65,778