Save Homework: Chapter 1 Homework Score: 0 of 1 pt 48 of 8 (0 complete) HW Score: 0%, 0 of 8 pts Problem 1-17 (algorithmic) Question Help Americo's Earnings and Global Taxation. Americo is a U.S.-based multinational manufacturing firm with wholly-owned subsidiaries in Brazil, Germany, and China, in addition to domestic operations in the United States. Americo is traded on the NASDAQ. Americo currently has 658,000 shares outstanding. The basic operating characteristics of the various business units are as follows: (Click on the icon to import the table into a spreadsheet.) Brazilian German Chinese U.S. Parent Subsidiary Subsidiary Subsidiary Business Performance (000s) cuss) (R$) rt (6) (1) Eamlings before taxes (EBT) $4,550 R$6,300 4,510 42.430 Corporate income tax rate 35% 25% 40% 30% Average exchange rate for the period R$1.86 0.6544/8 97.6917/$ Americo must pay corporate income tax in each country in which it currently has operations. a. After deducting taxes in each country, what are Americo's consolidated earnings and consolidated earnings per share in U.S. dollars? All MNEs attempt to minimize their global tax liabilities. Answer the following questions regarding America's alobal tax liabilities: a. Alter deducting taxes in each country, what are Americo's consolidated earnings and consolidated earings per share in U.S. dollars? Son! Calculate the business performance per country below: (Round to two decimal places. Round exchange rates to four decimal places.) U.S. Parent Business Performance (000s) Company Esmings before taxes (local currency) $ Less corporate income taxes $ Net profits of individual subsidiary $ e FINCA Enter any number in the edit fields and then click Check Answer. 18 parts Clear All Check Answer remaining Score: 0 of 1 pt 8 of 8 (0 complete) HW Score: 0%, 00 Problem 1-17 (algorithmic) Question Help Drainan German minese U.S. Parent Subsidiary Subsidiary Subsidiary Business Performance (000s) (USS) (RS) () Earnings before taxes (EBT) $4,550 R$6,300 4,510 2,430 Corporate income tax rate 35% 25% 40% 30% Average exchange rate for the period R$1.8031/$ 0.6544/$ 17.6917/$ Americo must pay corporate income tax in each country in which it currently has operations. a. After deducting taxes in each country, what are Americo's consolidated earnings and consolidated earnings per share in U.S. dollars? A MNEs attempt to minimize their global tax liabilities. Answer the following questions regarding Americo's global tax liabilities: b. What is the total amount-in U.S. dollars that Americo is paying across its global business in corporate income taxes? c. What is Americo's effective tax rate (total taxes paid as a proportion of pre-tax profit)? d. What would be the impact on America's EPs and global effective tax rate f Germany instituted a corporate tax reduction to 28%, and America's earnings before tax in Germany rose to 5,090,000? 001 a. Afler deducting taxes in each country, what are Americo's consolidated earnings and consolidated earnings per share in U.S. dollars? con Calculate the business performance per country below: (Round to two decimal places. Round exchange rates to four decimal places.) U.S. Parent Business Performance (000s) Company Earnings before taxes (local currency) $ Less corporate income taxes $ Net profits of individual subsidiary 3 (FNC 4 Enter any number in the edit fields and then click Check Answer 18 parte Clear All Check Answer remaining 26 core: 0 of 1 pt 8 of 8 (0 complete) HW Score: 0%, 0 of Problem 1-17 (algorithmic) Question Help Drazman verman Lrnese U.S. Parent Subsidiary Subsidiary Subsidiary Business Performance (000s) (USS) (R$) () (1) Earnings before taxes (EBT) $4,550 R$6,300 4,510 42,430 Corporate income tax rate 35% 25% 40% 30% Average exchange rate for the period R$1.8031/$ 0.6544/5 17.6917/8 Americo must pay corporate income tax in each country in which it currently has operations. a. After deducting taxes in each country, what are Americo's consolidated earnings and consolidated earnings per share in U.S. dollars? All MNEs attempt to minimize their global tax liabilities. Answer the following questions regarding Americo's global tax liabilities: b. What is the total amount-in U.S. dollars that Americo is paying across its global business in corporate income taxes? c. What is America's effective tax rate (total taxes paid as a proportion of pre-tax profit)? d. What would be the impact on Americo's EPS and global effective tax rate if Germany instituted a corporate tax reduction to 28%, and Americo's earnings before tax in Germany rose to 5,090,000? 2 U.S. Parent n Business Performance (000s) Company Earnings before taxes (local currency) $ Less corporate income taxes $ Net profit of individual subsidiary Avg exchange rate for the period (fc/5) Net profits of individual subsidiary FINC 4 Enter any number in the edit fields and then click Check
