Santos Shipping Lines $($SSL$)$ operates a fleet of contalner ships In International trade between Brazll and Ireland. All of the shipping

Income $($that Is$,$ that related to SSL$\text{'}$s ships$)$ is deemed to be earned In Brazll. SSL also owns a dock facility in Ireland that services SSL$\text{'}$s

fleet. Income from the dock facility is deemed to be earned in Ireland. SSL$\text{'}$s income deemed attributable to Brazil is taxed at a $34$

percent rate. Its Income attributable to Ireland is taxed at a $12\mathrm{.}5$ percent rate. Last year, the dock faclilty had operating revenues of $$31$

million, excluding services performed for SSL$\text{'}$s ships. SSL$\text{'}$s shipping revenues for last year were $$118$ million.

Operating costs of the dock facility totaled $$35$ million last year and operating costs for the shipping operation, before deduction of

dock facility costs, totaled $$61$ million. No similar dock facilities in Ireland are avallable to SSL$.$

However, a facility in the United Kingdom $($UK$)$ would have charged SSL an estimated $$30$ million for the services that SSL$\text{'}$s Ireland

dock provided to its ships. SSL management noted that had the services been provided in Brazll, the costs for the year would have

totaled $$36$ million. SSL argued to the Brazllian tax officlals that the approprlate transfer price is the price that would have been

charged in Brazll. Brazllian tax officlals determined that the UK price is the approprlate one.

Required:

$1.$ Calculate the total revenue, total costs, and Income taxes for both the Cargo Division and the Maintenance Division and the total

taxes for the company as a whole using the United Kingdom basis.

$2.$ Calculate the total revenue, total costs, and Income taxes for both the Cargo Division and the Maintenance Division and the total

taxes for the company as a whole using the Brazll basis.

$3.$ What is the difference in tax costs to SSL between the alternate transfer prices for dock services, that is$,$ its price in Brazll versus

that in the UK$?$

Calculate the total revenue, total costs, and income taxes for both the Cargo Division and the Maintenance Division and the

total taxes for the company as a whole using the United Kingdom basis.

Note: Do not round intermediate calculations. Enter amounts in thousands. $($Please complete requirement $1$ for the United kingdom basis, thanks$)$