U.S. International Corporation

U.S. International Corporation (USIC), a U.S. taxpayer, has investments in Foreign
Entities A–G. Relevant information for these entities for the current fi scal year
appears in the following table:


Don't use plagiarized sources. Get Your Custom Essay on
U.S. International Corporation
Get a PLAGIARISM-FREE custom essay written for you!
Order Essay

Entity Country
Owned Activity
before Tax
($ millions)
Tax Rate
Tax Rate
Net Amount
by Parent
($ millions)
USIC United States — Manufacturing $10 35% — —
A Argentina 100% Manufacturing $ 1 35 0% $0.2
B Brazil 100 Manufacturing $ 2 34 0 $2.5*
C Canada 100 Manufacturing $ 3 26 5 $1.0
D Hong Kong 100 Investment $ 2 16.5 0 $1.5
E Liechtenstein 100 Distribution $ 3 10 4 $0.0
F Japan 51 Manufacturing $ 2 38 5 $0.5
G New Zealand 60 Banking $ 4 28 5 $1.0

* Some dividends were paid out of beginning-of-year retained earnings.
Additional Information
1. USIC’s $10 million income before tax is derived from the production and sale of
products in the United States.
2. Each entity is legally incorporated in its host country other than Entity A, which
is registered with the Argentinian government as a branch.
3. Entities A, B, C, and F produce and market products in their home countries.

4. Entity D makes passive investments in stocks and bonds in the Hong Kong
fi nancial markets. Income is derived solely from dividends and interest.
5. Entity E markets goods purchased from (manufactured by) USIC. Of E’s sales,
95 percent are made in Austria, Germany, and Switzerland, and 5 percent are
made in Liechtenstein.
6. Entity G operates in the fi nancial services industry in New Zealand.
Determine the following:
a. The amount of U.S. taxable income for each Entity A–G.
b. The foreign tax credit allowed in the United States, fi rst by basket and then in
c. The net U.S. tax liability.
d. Any excess foreign tax credits (identify by basket).

Homework Paper
Calculate your paper price
Pages (550 words)
Approximate price: -

Our Advantages

Plagiarism Free Papers

All our papers are original and written from scratch. We will email you a plagiarism report alongside your completed paper once done.

Free Revisions

All papers are submitted ahead of time. We do this to allow you time to point out any area you would need revision on, and help you for free.

Free Title-page

A title page preceeds all your paper content. Here, you put all your personal information and this we give out for free.

Free Bibliography

Without a reference/bibliography page, any academic paper is incomplete and doesnt qualify for grading. We also offer this for free.

Originality & Security

At Homework Sharks, we take confidentiality seriously and all your personal information is stored safely and do not share it with third parties for any reasons whatsoever. Our work is original and we send plagiarism reports alongside every paper.

24/7 Customer Support

Our agents are online 24/7. Feel free to contact us through email or talk to our live agents.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

We work around the clock to see best customer experience.


Flexible Pricing

Our prces are pocket friendly and you can do partial payments. When that is not enough, we have a free enquiry service.


Admission help & Client-Writer Contact

When you need to elaborate something further to your writer, we provide that button.


Paper Submission

We take deadlines seriously and our papers are submitted ahead of time. We are happy to assist you in case of any adjustments needed.


Customer Feedback

Your feedback, good or bad is of great concern to us and we take it very seriously. We are, therefore, constantly adjusting our policies to ensure best customer/writer experience.