Question
Subject: Business Tax 2018 Brandy, a U.S. corporation, operates a manufacturing branch in Chad, which does not have an income tax treaty with the United
Subject: Business Tax 2018
Brandy, a U.S. corporation, operates a manufacturing branch in Chad, which does not have an income tax treaty with the United States. Brandys worldwide Federal taxable income is $30 million, so it is subject to a 21% marginal tax rate. Profits and taxes in Chad for the current year are summarized as follows. Compute Brandys foreign tax credit associated with its operations in Chad.
| Income Item | Chad Income This Year | Chad Tax Rate | Chad Tax Paid |
|---|---|---|---|
| Manufacturing profits | $2,500,000 | 20% | $500,000 |
| Dividend | 300,000 | 5% | 15,000 |
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Managing Financial Resources
Authors: Mick Broadbent, John Cullen
3rd Edition
1138134546, 978-1138134546
