Taxation Paper 7

1

Miramar Corp. has total business income of $1 million, and in State XY has a sales factor of 60%, a payroll factor of 50%, and a property factor of 49%. What would be Miramar’s State XY apportionment factor if State XY used an apportionment formula in which the property factor was double-weighted?






2

Which one of the following statements regarding the foreign operations of Glencoe Corporation (a domestic corporation) is correct?






3

For the current year, Crocker Corp., a domestic corporation, has US taxable income of $700,000, which includes $100,000 from a foreign division. Crocker paid $40,000 of foreign income taxes on the income of the foreign division. Assuming Crocker’s US income tax for the current year before credits is $210,000, its maximum foreign tax credit for the current year is






4

For the current year, Crocker Corp., a domestic corporation, has US taxable income of $700,000, which includes $100,000 from a foreign division. Crocker paid $40,000 of foreign income taxes on the income of the foreign division. Crocker Corp.’s unused foreign tax credit:






5

The following information pertains to Raubolt Corporation’s operations for the current year:
Worldwide taxable income $300,000
US source taxable income 180,000
US income tax before foreign tax credit 96,000
General category income 90,000
Foreign income tax paid on general category income 32,000
Foreign passive category income 30,000
Foreign income tax paid on passive category income 7,500
What amount of foreign tax credit may Raubolt Corporation claim for the current year?






Result

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