Question
Velox Inc. began operations last year. For its first two taxable years, Veloxs records show the following. Year 1 Year 2 U.S. source income $300,000
Velox Inc. began operations last year. For its first two taxable years, Veloxs records show the following.
| Year 1 | Year 2 | |||
| U.S. source income | $300,000 | $270,000 | ||
| Foreign source income | 200,000 | 630,000 | ||
| Taxable income | $500,000 | $900,000 | ||
| Foreign income tax paid | $62,000 | $101,000 |
Compute Veloxs U.S. tax for both years, assuming the foreign source income does not qualify as FDII.
the corporate tax rate is 21 %
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Accounting And Finance For Your Small Business
Authors: Eric James Burton, Steven M Bragg
1st Edition
9780471323600
