Chapter 10 - Application Problem 12 - Filigree Inc.
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File contains a fully formatted MS Word file containing the answers to advanced tax accounting Chapter 10 - Application Problem 12 - tax consequences for the affiliated subsidiary of Filigree Inc. and Gold Corporation
Chapter 10 - Application Problem 12
Filigree Inc., a foreign corporation, is a wholly owned subsidiary of Gold Corporation, a U.S. corporation. Filigree's 2003 taxable income of $1 million included $300,000 of Subpart F income. Filigree paid $270,000 of foreign income tax and made no distributions to Gold during 2003. Gold's separate company 2003 taxable income was $2 million, derived from U.S. sources.
a. What are the U.S. tax consequences of Filigree's 2003 activity?
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File contains a fully formatted MS Word file containing the answers to advanced tax accounting Chapter 10 - Application Problem 12.
Chapter 10 - Application Problem 12
Filigree Inc., a foreign corporation, is a wholly owned subsidiary of Gold Corporation, a U.S. corporation. Filigree's 2003 taxable income of $1 million included $300,000 of Subpart F income. Filigree paid $270,000 of foreign income tax and made no distributions to Gold during 2003. Gold's separate company 2003 taxable income was $2 million, derived from U.S. sources.
a. What are the U.S. tax consequences of Filigree's 2003 activity?
b. Calculate Gold's 2003 taxable income, allowable foreign tax credit, and net U.S. tax liability.
Calculation for Gold Corporation's 2003 taxable income:
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Chapter 10 - Application Problem 12
Filigree Inc., a foreign corporation, is a wholly owned subsidiary of Gold Corporation, a U.S. corporation. Filigree's 2003 taxable income of $1 million included $300,000 of Subpart F income. Filigree paid $270,000 of foreign income tax and made no distributions to Gold during 2003. Gold's separate company 2003 taxable income was $2 million, derived from U.S. sources.
a. What are the U.S. tax consequences of Filigree's 2003 activity?
A United States parent of a CFC (controlled foreign corporation) is required to include in ...
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