Skane Shipping Ltd. (SSL) operates a fleet of container ships in intemational trade between Sweden and Singapore. All of the shipping Income (that is, that related to SSL's ships) is deemed to be eamed in Sweden SSL also owns a dock facility in Singapore that services SSL's fleet. Income from the dock facility is deemed to be earned in Singapore SSL's income deemed attributable to Sweden is taxed at a 75 percent rate its income attributable to Singapore is taxed at a 30 percent rate. Last year, the dock facility had operating revenues of $10 million, excluding services performed for SSL's ships, ssus shipping revenues for last year were $45 million Operating costs of the dock facility totaled $11 million last year and operating costs for the shipping operation before deduction of dock facility costs, totaled $30 million. No similar dock facities in Singapore are available to SSL However , a facility in Malaysia would have charged SSL an estimated $9 million for the services that SSL's Singapore dock provided to its ships, SSL , management noted that had the services been provided in Sweden, the costs for the year would have totaled $13 million SSL argued to the Swedish tax officials that the appropnate transfer price is the price that would have been charged in Sweden Swedish tax officials determined that the Malaysian price is the appropriate one. Required: 1. Calculate the revenues, costs, income taxes and total taxes for both stand the Dock Facility using the Malaysian basis 2. Calculate the revenues, costs, income taxes and total taxes for both sst, and the Dock Facility using the Swedish basis. 3. What is the difference in tax costs to SSL between the alternate transfer prices for dock services, that is, its price in Sweden versus that in Malaysia? Complete this question by entering your answers in the tabs below. Difference in Malaysia Basis Sweden Basis Taxes Calculate the revenues, costs, income taxes and total taxes for both sst and the Dock Facility using the Malaysian basis. (Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places.) Shipping Dock Facility Company Total revenue Total costs Income taxes Total taxes million Malaysia Band Sweden Basis > Complete this question by entering your answers in the tabs below. Difference in Malaysia Basis Sweden Basis Taxes Calculate the revenues, costs, income taxes and total taxes for both SSL and the Dock Facility using the Swedish basis. (DO not round intermediate calculations. Enter your answers in milions rounded to 2 decimal places.) Shipping Company Dock Facility Total revenue Total costs Income taxes Total taxes million Complete this question by entering your answers in the tabs below. Malaysia Basis Sweden Basis Difference in Taxes What is the difference in tax costs to SSL between the alternate transfer prices for dock services, that is, its price in Sweden versus that in Malaysia? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Difference in taxes million
